Refer to the above figure. If the market price is equal to A, which statement can be made about economic profits?
A. Economic profits are positive and equal to ABEF.
B. Economic profits are negative and equal to ABQ
0.
C. Economic profits are negative and equal to GCEF.
D. Economic profits are positive and equal to ABCG.
Answer: D
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What is a tariff?
What will be an ideal response?
In this graph, fewer government purchases and/or higher taxes will move the equilibrium ______.
a. off the LRAS curve
b. off the AD2 curve
c. from point e1 to point E2
d. from point E2 to point e1
The production side efficiency loss of a tariff is caused by
A) higher profits gained by foreign producers. B) the expansion of relative inefficient domestic production. C) the contraction of domestic consumption. D) the increase in government revenue.
Discuss the market for gasoline and the Organization of Petroleum Exporting Countries (OPEC) role in determining price
What will be an ideal response?