Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
With no subsidy, what is consumer surplus?
A. $1,000 per day
B. $9,000 per day
C. $4,000 per day
D. $8,000 per day
Answer: C
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A. Unavailable and inefficient B. Unattainable and efficient C. Attainable and inefficient D. Attainable and efficient
Resources that are ________ tend to be carefully managed to provide profits, which ensures that they will last a long time
A) publicly held B) privately owned C) scarce D) abundant
Fluctuations in aggregate demand and aggregate supply explain why real GDP fluctuates
Indicate whether the statement is true or false
Other things being equal, what is the effect of deficit spending on interest rates?
A) Interest rates decline. B) Interest rates rise. C) Interest rates hold constant because the demand for credit decreases. D) There is no impact unless the Federal Reserve decides to alter the money supply.