"Supporters of import restrictions and protectionist policies place greater weight on producer welfare than on consumer welfare." Comment
What will be an ideal response?
Import restrictions increase the producer surplus of domestic producers. Consumer surplus, however, decreases by more than producers gain. Thus, the statement seems to be correct.
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A. decreased by 5%. B. decreased by 10%. C. increased. D. remained constant.
The above figure shows the situation of a monopolistic competitor in the short run. The maximum economic profits of the firm equal
A) $50,000. B) $30,000. C) 15,000. D) zero.
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a. Board of Governors. b. Federal Reserve Banks. c. Federal Open Market Committee. d. Federal Advisory Council. e. Member banks.
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