Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
With a per-unit tariff in the amount Pt?Pc, price and total quantity sold will be
A. Pc and z.
B. Pa and x.
C. Pt and x.
D. Pt and y.
Answer: D
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Import-competing industries in the United States are likely to resist
A. Depreciation of the dollar. B. Devaluation of the dollar. C. Evaluation of the dollar. D. Appreciation of the dollar.
The graph above shows the production possibilities curve for an economy producing two goods, X and Y. Which of the points on the graph indicate unemployed resources?
A. D only B. E and A only C. B and C only D. A, D, and E only
A price maker is a buyer or a seller who:
A. takes the market price as given. B. buys or sells only at a price where profits can be made. C. accepts whatever price that the government legislates as the price of the good or service. D. has the ability to influence the equilibrium price in the market.
Toby sells wheat in a perfectly competitive market. This month Toby receives a higher price for a bushel of wheat than he did last month. Which of the following might explain this?
A. The market demand for wheat increased. B. The market demand for wheat decreased. C. Firms entered the market. D. Toby's costs have decreased.