Which of the following would shift the aggregate demand curve to the right?
A. A lower future expected price level
B. An increase in foreign income
C. An appreciation of the value of a country's currency
D. An increase in imports
Answer: B
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Which of the following is NOT a requirement in selecting a policy instrument?
A) measurability B) controllability C) flexibility D) predictability
Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower prices to
a. only existing customers who now get lower prices on the gowns they were already planning to purchase. b. only new customers who enter the market because of the lower prices. c. both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices. d. Consumer surplus does not increase; it decreases.
In which of the following markets are strategic interactions among firms most likely to occur?
a. markets to which patent and copyright laws apply b. the market for piano lessons c. the market for tennis balls d. the market for corn
Special interest group Z receives a 1/200th slice of the economic pie. Its net benefit from both an economic growth policy and a transfer policy is $30,000. How much does the size of the economic pie (Real GDP) need to grow before group Z is indifferent between the two policies?
A) $150 B) $600,000 C) $600,000,000 D) $6,000,000 E) none of the above