According to the graph shown, the amount of consumer surplus domestic consumers enjoy once a tariff has been imposed is:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. A
B. ABC
C. ABCDEFG
D. ABCDEFGHIJKL
C. ABCDEFG
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The effectiveness of any stimulus program depends on:
a. the nature of the tax only b. the size of the tax and spending multipliers c. the nature of the tax and tax multipliers d. the income group targeted e. the marginal propensity to consume only
Which of the following illustrates government acting as a referee?
a. taxing high income persons b. enforcing contract provisions between buyer and seller c. buying new weapons for defense d. mailing checks to social security recipients e. collecting data on imports and exports
If a price floor is a binding constraint on a market, then
a. the equilibrium price must be above the price floor. b. the quantity demanded must exceed the quantity supplied. c. sellers cannot sell all they want to sell at the price floor. d. buyers cannot buy all they want to buy at the price floor.
More farmers have recently entered the wheat industry. In addition there has been a technological advancement in the fertilizer industry providing wheat farmers with a cheaper and a more effective fertilizer. In the market for wheat, the effects these changes will have on the equilibrium price and quantity are
A. price will increase, and quantity will decrease. B. price will increase, and the effect on quantity is indeterminate. C. price will decrease, and quantity will increase. D. price will decrease, and the effect on quantity is indeterminate.