The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = 1 represents the world supply curve
A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of A) Q1 units.
B) Q2 units.
C) Q2 - Q1 units.
D) Q1 - Q2 units.
A
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For a demand curve that is horizontal, the marginal revenue curve
A) will be to the right of the demand curve and half as steep. B) will be to the left of the demand curve and half as steep. C) will be to the right of the demand curve and twice as steep. D) will be the same as the demand curve.
In the equation of exchange, an increase in M of 8 percent could be accompanied by changes in velocity, the price level and real GDP of:
a. -2%, 3%, 3%. b. 4%, 0%, 4%. c. 2%, 8%, 8%. d. 8%, 8%, 4%.
Which of the following statements about purchasing power parity (PPP) is most likely correct?
a. PPP exchange rates fluctuate considerably over the short term but do not fluctuate from year to year. b. PPP exchange rates stay fairly constant and change only modestly, if at all, from year to year. c. PPP exchange rates stay fairly constant over the short term, but fluctuate considerably from year to year. d. PPP exchange rates do not fluctuate over the short term or from year to year.
Which of the following contributes to economic development?
What will be an ideal response?