With respect to welfare economics, why is the equilibrium price of a product considered to be the best price?
a) It minimizes costs and maximizes profits of sellers.
b) It minimizes the level of welfare payments to those who no longer live below the poverty line.
c) It maximizes total revenue to firms and total utility to buyers.
d) It maximizes the total welfare of buyers and sellers.
Ans: d) It maximizes the total welfare of buyers and sellers.
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The fall in the U.S. dollar has not affected Chinese trade as much as that for other countries because:
a. China has appreciated its currency. b. China has reduced its exports. c. China has depreciated its currency. d. China has pegged its currency to the dollar.
Each governor of the Federal Reserve is
A) appointed by the President to a 4-year term. B) appointed by the President to a 14-year term. C) appointed by the President for life. D) elected by the Presidents of banks and savings institutions.