Figure 4-25
Refer to . Producer surplus before the tax was levied is represented by area
a.
A.
b.
A + B + C.
c.
D + E + F.
d.
F.
c
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When GDP = $2.5 trillion, C = $1.0 trillion, I = $0.6 trillion, G = $0.4 trillion, and NX = $0. Then
A) unplanned inventory change = -$0.5 trillion. B) equilibrium expenditure = $2.0 trillion. C) aggregate planned expenditure = $1.6 trillion. D) unplanned inventory change = $0.5 trillion. E) aggregate planned expenditure = $2.5 trillion.
Define the exchange rate
What will be an ideal response?
The welfare loss from an import quota is greater than that of an equivalent tariff because
A) tariff revenues can be used to society's benefit. B) the loss in consumer surplus is not as large. C) domestic producers gain more from a quota than from a tariff. D) tariff revenues represent an additional deadweight loss.
___________ is the highest valued alternative that must be sacrificed to satisfy a want or attain something
a. Intangible resource b. Choice c. Opportunity cost d. Availability