This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, if the government restricts trade, area G represents:
A. quota rents.
B. transferred surplus.
C. government tax revenues.
D. deadweight loss.
Answer: A
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In general, a nation can enjoy a higher standard of living by ________ than by being self sufficient.
A. specialization and trading B. avoiding trade with other nations C. increasing its versatility D. taxing imported goods
As the money wage rate increase...
What will be an ideal response?
Monopolies tend to
A) hire more labor than duopolists or competitive firms, hence they are inefficient. B) hire more labor than competitive firms but less than duopolists. C) hire less labor than competitive firms because they produce at an inefficient level. D) hire more labor because they produce at an inefficient level.
As a result of advances in technology, cellular telephones have become cheaper to produce. Illustrate the effect of this change on the market for cellular telephones
What will be an ideal response?