Psychologists have found that people tend to be ________ in their own judgments

If the monthly unemployment rate increase mentioned in the Application was a temporary aberration, the best economic decision by the committee would be to

A) not change monetary policy. B) increase the money supply to stimulate the economy. C) decrease the money supply to stimulate the economy. D) decrease the money supply to slow the economy down.

Suppose that policymakers are considering placing a tax on either of two markets. In Market A, the tax will have a significant effect on the price consumers pay, but it will not affect equilibrium quantity very much. In Market B, the same tax will have only a small effect on the price consumers pay, but it will have a large effect on the equilibrium quantity. Other factors are held constant. In

which market will the tax have a larger deadweight loss? a. Market A b. Market B c. The deadweight loss will be the same in both markets. d. There is not enough information to answer the question.