Fearing that the economy was overheating, policymakers instituted a temporary tax surcharge in 1968. This temporary surtax:
A. successfully reduced consumption sufficiently to cool down the economy.
B. reduced savings but had little effect on consumption.
C. drastically reduced both savings and consumption.
D. increased savings and reduced consumption.
Answer: B
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Refer to the figure above. What is the gain in the market-wide consumer surplus when the price of calculators changes from $6 to $3?
A) $565 B) $580 C) $950 D) $1050
When you buy a hamburger for lunch, you are using money as a
A) store of value. B) standard of deferred payment. C) medium of exchange. D) unit of accounting.
When many banks fail simultaneously, this is known as a
a. run on the bank b. depression c. recession d. banking panic e. Federal Reserve crisis
The official poverty rate of elderly families
a. has been virtually unchanged for the last four decades. b. increased as the elderly became a larger proportion of the U.S. population during the 1970s. c. rose prior to the War on Poverty programs of the late 1960s, but it has declined steadily since. d. has declined during the last four decades.