Some companies merge in order to lower costs through efficient joint production
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose the Fed purchases $1 million in bonds in the open market. Explain how the money supply can increase by more than $1 million
What will be an ideal response?
Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price paid by buyers with the tax is:
A. $2.00. C. $2.50. D. $2.25.
A consumer values a car at $30,000 and a producer values the same car at $20,000 . If the transaction is completed at $24,000 . what level of sales tax will result in unconsummated transaction?
a. 0% b. 25% c. 20% d. 40%
Because a price floor causes:
A. a shortage, some form of rationing must occur. B. a surplus, some producers may ultimately lose because they won't have enough customers. C. a shortage, rent-seeking will occur. D. a surplus, everyone will be better off.