An unexpected large increase in the price of crude oil is an example of a supply shock
Indicate whether the statement is true or false
TRUE
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From the perspective of consumers, a quota is preferred to a tariff
Indicate whether the statement is true or false
If buyers pay more of a tax than do the sellers,
A) demand is more elastic than supply. B) the amount of tax revenue collected by the government is almost zero. C) supply is more elastic than demand. D) the equilibrium price paid by buyers rises by less than half the amount of the tax. E) None of the above answers is correct.
Refer to Figure 15-17. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor?
A) $0 B) $40 C) $88 D) $150
Suppose that Y = 4,000 and we are at a point on the money demand schedule where (M/P) = 600. Should Y rise to 4,200, the same quantity of real money balances
A) will not be demanded under any conditions. B) will be demanded again provided the interest rate does not change. C) will be demanded again provided the interest rate rises by a certain amount. D) will be demanded again provided the interest rate falls by a certain amount.