During a(n) ________ many firms experience increased profits, which increases ________ and investment spending
A) expansion; cash flow B) recession; cash flow
C) recession; business confidence D) expansion; government spending
A
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In the figure above, what is the equilibrium price and quantity?
What will be an ideal response?
The Fed accidentally discovered open market operations in the early
A) 1920s. B) 1910s. C) 1900s. D) 1890s.
In the absence of taxes, Carlos would prefer to purchase a large fishing boat with a 75 hp motor. The government has recently decided to place a tax on boats with 75 hp motors or higher. If Carlos decides to purchase a smaller boat with a 50 hp motor as a result of the tax, which of the following statements is correct?
a. Other people who choose to purchase large boats will incur the cost of the deadweight loss of the tax. b. There are no deadweight losses as long as some people still choose to purchase large boats. c. In order to determine the size of the deadweight loss, we must add the revenues from the tax to the loss in Carlos's consumer surplus. d. Carlos is worse off, and his loss of welfare is part of the deadweight loss of the tax.
Why did the U.S. price of imports of compact trucks (like the Toyota Tacoma) not increase by 25% when the U.S. Customs Service reclassified them as "complete or unfinished trucks" with a tariff of 25%?
a. U.S. truck dealers that retailed imported compact trucks lowered their retail prices and absorbed part of the tariff. b. U.S. consumers negotiated lower retail prices from U.S. truck dealers selling imported compact trucks. c. The U.S. government decided not to collect the 25% tariff on imported Japanese compact trucks and instead made them subject to voluntary export restraints. d. Japanese truck manufacturers lowered their prices on trucks sold in the U.S. market and absorbed part of the tariff.