When economists study the interactions of different people, the focus of their studies is on
A) inequality of wealth.
B) many different individual plans that must be coordinated.
C) not enough jobs for everyone who wants one.
D) people's excessive attachment to their own interests.
E) too many dollars chasing too few goods.
B
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Suppose there is a $200 billion increase in government spending. We know that this increase in government spending will cause which of the following to occur?
A) equilibrium real GDP will increase by exactly $200 billion. B) an increase in equilibrium real GDP and an increase in the multiplier. C) an increase in equilibrium real GDP and a reduction in the multiplier. D) an increase in equilibrium real GDP and no change in the multiplier.
As shown in the graph, when a government imposes a quota, consumer surplus will:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. decrease by EFGH.
B. increase by EFGH.
C. decrease by FG only.
D. increase to ABCD.
The discount rate is
a. set in the money market. b. set by each member bank. c. set by the Federal Reserve Bank. d. the same as the federal funds rate.
Consider an industry consisting of four firms with market shares of 30 percent, 25 percent, 25 percent, and 20 percent. Calculate the Herfindahl Hirschman Index and interpret your result.
What will be an ideal response?