An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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In order to protect key industries, some countries impose taxes on their exports instead of imports, mainly because it is easier to collect taxes from the export industry
a. True b. False Indicate whether the statement is true or false
Paper money in the U.S. is: a. fiat money
b. more than half of M2. c. only partially backed by gold and silver in Fort Knox. d. convertible into specie (gold or silver) at the holder's request.
Which U.S. president said, "Give me a one-handed economist. All my economists say ‘On the one hand, and then on the other hand.'"?
A) Barack Obama B) Bill Clinton C) Ronald Reagan D) Dwight D. Eisenhower E) Harry S. Truman
Answer the following statement(s) true (T) or false (F)
1. The supply curve for the entire market looks like a staircase. 2. Total welfare gains are the difference between consumer and producer surpluses. 3. A deadweight loss is the reduction in both consumer and producer surpluses. 4. If consumers valued the last unit of a product by more than it cost to produce, then welfare could be increased by producing less output. 5. Sometimes innocent bystanders are impacted by the decisions of buyers and sellers.