According to the graph shown, if the economy is operating under free trade, who would be opposed to a tariff?
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. Foreign producers
B. Domestic consumers
C. Domestic producers
D. Both A and B would be opposed to a tariff.
D. Both A and B would be opposed to a tariff.
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The individual firm maximizes its total profit by producing the level of output at which the difference between marginal revenue and marginal cost is as large as possible
Indicate whether the statement is true or false
A nation running a persistent balance of payments surplus while part of a fixed exchange rate system would be required to __________ international reserves in an effort to prevent its currency from __________
A) amass; appreciating B) amass; depreciating C) pay out; appreciating D) pay out; depreciating
When the United States ran large budget deficits during 2001-2011,
a. private investment was strong and consumer expenditures declined as a percentage of GDP. b. private investment was weak and consumption increased as a share of GDP. c. the trade deficit of the United States shrank, indicating that borrowing from foreigners was declining. d. the deficits were financed exclusively through borrowing from domestic sources.
Given the following information, compute the unemployment rate: 9 million unemployed; 119 million employed.
What will be an ideal response?