A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T-shirt and domestic production rises to 15 million T-shirts per year. The quota on T-shirts causes domestic consumers to
A. gain $7 million.
B. lose $70 million.
C. lose $7 million.
D. lose $77 million.
Answer: D
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The reversal of fortune can be attributed to the fact that:
A) economic institutions in European colonies were inclusive in all nations. B) economic institutions in European colonies were extractive in prosperous nations and inclusive in other nations. C) economic institutions in European colonies were extractive in all nations. D) economic institutions in European colonies were inclusive in prosperous nations and extractive in other nations.
In Marx's ideal communist society, the state:
a. actively promotes income incentives. b. does not exist. c. follows the doctrine of laissez faire. d. owns resources and conducts planning.
Figure 10-7
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Which of the diagrams in Figure 10-7 represents a decrease in consumer spending combined with a positive supply shock?
A. (A) and (B) B. (C) and (D) C. (A) and (C) D. (B) and (D)
Which writer held the view that by showering so much money on the poor, the government robbed them of their incentive to work?
A. Barbara Ehrenreich B. Frances Fox Piven C. Charley Murray D. William Julius Wilson