Refer to Figure 9.7. Because of this policy, total producer surplus including funds received from the government will be at least
A) $10,000.
B) $40,000.
C) $80,000.
D) $100,000.
E) $160,000.
C
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A period of stagflation can be considered as part of the normal aftermath of a
A. decrease in aggregate demand. B. period of high unemployment. C. period of low unemployment. D. period of inward shifting aggregate demand.
A competitive market is one:
A) that operates with little or no government control. B) where almost all exchanges take place involuntarily. C) that has price controls imposed by a ruling authority. D) where determination of equilibrium quantity need not rely on the forces of demand and supply.
If the total utility for eating up to five $2.00 hamburgers is 40, 60, 70, 75, 70, respectively, which of the following is true?
a. A rational consumer would choose to eat five hamburgers at the price of $2.00 b. A rational consumer would choose to eat five hamburgers only if the price was reduced to $1.00. c. A rational consumer would choose to eat five hamburgers only if the 5th hamburger as free. d. A rational consumer would have to be compensated to eat the 5th hamburger.
Suppose Russia can produce automobiles relatively cheaply, but they have poor gas mileage and create a great deal of air pollution. The U.S. government, concerned about the quality of air, would like to see fewer Russian automobiles and more cleaner-running American automobiles on the road.a. What is the nature of the market failure that would justify the U.S. government taking some action against the importation of Russian automobiles?b. Explain why imposing a tariff is a second-best policy to employ in this case and what policy choice would be more efficient.
What will be an ideal response?