The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the marginal benefit of the last gallon of milk consumed is
A) $3.50 a gallon.
B) $4.00 a gallon.
C) $4.50 a gallon.
D) $5.00 a gallon.
A
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A government program, once started, perpetuates itself because those in charge of administering the program often become its strongest supporters
a. True b. False
The amount of money that a bank must keep on hand per dollar of deposits is called
A) the discount rate. B) the quick ratio. C) the multiplier. D) the reserve requirement.
What is meant by the term inflation bias?
A) when policymakers allow exchange rates to continually depreciate and are willing to accept higher rates of inflation B) when policymakers accept higher rates of inflation and are willing to allow exchange rates to continually depreciate C) when policy makers use expansionary monetary policy for short-term gain, at the expense of higher inflation in the longer run D) when fiscal policymakers use deficit financing to stimulate the economy at the expense of higher long-run inflation
Exhibit 9-8 Profit maximizing for a monopolist
?
As shown in Exhibit 9-8, if the monopolist produces the profit-maximizing output, total revenue is the rectangular area:
A. OQAP1. B. OQ2BP2. C. OQ3CP3. D. OQ2DP4.