The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then this country will ________ microwaves.
A. import 800
B. import 400
C. export 800
D. export
Answer: A
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The figure above illustrates the current market for fast-food workers in Baltimore
a. Without any government intervention, what is the equilibrium wage rate and amount of employment? b. If the city government imposes a minimum wage of $3 an hour, what is the amount of employment? Does the minimum wage create any unemployment? Why or why not? c. If the city government imposes a minimum wage of $6 an hour, what is the amount of employment? Does the minimum wage create any unemployment? Why or why not?
A maximum legal price that may be charged for a particular good or service is known as a
A) price floor. B) price ceiling. C) black market. D) price support.
Monetization of the deficit (or debt) means that
a. the government uses monetary policy to control the economy rather than fiscal policy. b. inflation accounting corrects for price increases. c. the Fed buys newly issued debt and increases the money supply. d. the amount of money in circulation is equal to the size of the debt.
If the inflation rate in Japan is higher than the inflation rate in the United States
A) there will be an increase in U.S. imports from Japan. B) there will be an increase in Japanese exports to the United States. C) there will be no change is U.S. imports from Japan. D) there will be a decrease in U.S. imports from Japan.