Which type of policy raises the most revenue for the government?
A) tariff
B) quota
C) voluntary export restraints
D) If they are set at the same level, all of the above raise the same amount of revenue.
E) None of the above answers is correct because none of the policies raises revenue for the government.
A
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Refer to Figure 27-11. In the graph above, the shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion
A) may be greater than or less than B) would be less than C) would be greater than D) would be equal to
The interest-rate effect
a. depends on the idea that increases in interest rates decrease the quantity of goods and services demanded. b. depends on the idea that increases in interest rates decrease the quantity of goods and services supplied. c. is responsible for the downward slope of the money-demand curve. d. is the least important reason, in the case of the United States, for the downward slope of the aggregate-demand curve.
Consider an economy with a particular distribution of income. Over the next 10 years, the income of all households increases by $20,000. How will the Gini coefficient change over those 10 years?
A. The Gini coefficient will decrease. B. The Gini coefficient will increase. C. The Gini coefficient will become more negative. D. The Gini coefficient will stay the same as all households received the same increase in income. E. It is impossible to determine how the Gini coefficient will change as it will depend on the original income distribution.
If a profit-maximizing firm finds that, at its current level of production, MR > MC, it will
A) earn greater profits than if MR = MC. B) increase output. C) decrease output. D) shut down.