If a city decides to lift restrictions of how many taxi cabs can operate, social welfare will increase
Indicate whether the statement is true or false
True . Even though turning producer surplus into consumer surplus doesn't increase total welfare, the elimination of the deadweight loss that resulted from the limit does.
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In the 1970s, nominal interest rates in the United States were quite high, while real rates were extremely low
Which group "wins" in this circumstance, lenders or borrowers? What might explain the willingness of the "losers" to accept disadvantageous loan terms?
Limited liability exists when
A) the liability of owners is limited to the value of the shares in the firm they own. B) the liability of owners is limited to the share of the debt they personally took on. C) partners specialize and each partner is responsible for the debts of his or her specialized area. D) bondholders must receive their payments before stockholders can earn any money.
When many sellers are involved in selling their products in a market, the market structure may be which of the following? i. perfect competition ii. monopolistic competition iii. monopoly
a. (i) only b. either (i) or (ii) c. (ii) only d. (i), (ii), or (iii)
The amount of currency in the economy is determined ultimately by the demands of the
a. commercial banks and the public b. Board of Governors c. District Federal Reserve Banks d. District Federal Reserve Banks and commercial banks e. Board of Governors and the District Federal Reserve Banks