Suppose a policy change generates $90,000 of benefits for low-income families and $150,000 of costs for high-income families. We can best describe the change as
A. equitable.
B. potentially efficient.
C. inefficient.
D. Pareto efficient.
Answer: C
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Statistical analysis reveals that the long-run money velocity (for euro-area M3, which is equivalent to U.S. M2):
A. is much more stable in the U.S. than in the euro area. B. is unstable in the euro similar to the instability that exists in the U.S. C. has increased in the euro area since 1980. D. is more stable in the euro area than in the U.S.
About one out of every _________ Hispanics is poor.
Fill in the blank(s) with the appropriate word(s).
When there is political instability in another country, the United States can expect
A) an increase in the financial account balance due to an increase in the current account. B) an increase in the financial account balance due to the movement of assets to the U.S. C) a decrease in the balance of payments due to a decrease in official reserve transactions. D) a decrease in the balance of payments due to a decrease in the demand for goods and services.
A firm will break even when
A) P = ATC. B) P > ATC. C) P < AVC. D) P = AVC.