If the federal government began granting a subsidy of 10 cents per apple to apple growers and as a result the price of apples to consumers falls by 8 cents,
a. the actual benefit of this subsidy goes mostly to consumers.
b. the actual benefit of this subsidy goes mostly to producers.
c. the actual benefit of this subsidy would be shared equally by producers and consumers.
d. nobody would benefit from the subsidy.
A
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In Figure 3-4 above, the multiplier is
A) 2.5. B) 0.6. C) 0.4. D) 1.67. E) 1.5.
Treble damages are equal to ________ times the amount of damages suffered by the ________.
A) five; cartel firm B) five; winning plaintiff C) three; cartel firm D) three; winning plaintiff
Assuming all other things equal, what would happen to the U.S. dollar real exchange rate under each of the following circumstances?
a. The U.S. nominal exchange rate depreciates. b. U.S. domestic prices increase. c. Prices in the rest of the world rise.
Exhibit 2-17 Production possibilities curve
In Exhibit 2-17, if countries A and B currently have the same production possibilities curve (PPC) as given in the figure, but this year country A locates at point A on its PPC and country B locates at point B on its PPC, then country A:
A. is more efficient than country B. B. will grow at a faster rate than country B. C. will grow at a slower rate than country B. D. is producing more capital goods than country B.