Macroeconomics approaches the study of economics from the viewpoint of
A. the operation of specific product and resource markets.
B. governmental units.
C. the entire economy.
D. individual firms.
Answer: C
You might also like to view...
The accompanying diagram shows the U.S. market for automobiles. P0 is the world price of automobiles, Q0 is the quantity of American automobiles produced, and Q1 - Q0 is the quantity of automobiles imported. Consumers are indifferent between American and imported automobiles, but each imported automobile creates $100 of pollution costs.
(i) Calculate consumers' surplus, producers' surplus, the pollution damages, and social gain when no attempt is made to internalize the externality.
(ii) Suppose the government imposes a $100 tariff on imported automobiles. Calculate consumers' surplus, producers' surplus, tariff revenue, the pollution damages, and social gain in this situation. Did the tariff increase social gain? Did the tariff result in an efficient outcome? Explain.
Which of the following is clearly being sold below cost?
A) 2-for-the-price-of-one theatre tickets B) Senior-citizens discounts on meals at the local diner C) The free software included in the purchase of a new personal computer D) The magazine subscription offering 30% off the regular newsstand price E) None of the above.
What will cause the equilibrium point to move from E1 to E2?
a. a downward movement, or decrease, in price from P2 to P1
b. an upward movement, or increase, in price from P1 to P2
c. a leftward movement, or decrease, in quantity from Q2 to Q1
d. a rightward movement, or increase, in quantity from 0 to Q1
Holding all else constant, an increase in preferences by Mexicans for U.S. goods will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase