Refer to Figure 9.9. At free trade, domestic producer surplus would be
A) $2,500.
B) $50,000.
C) $1,250,000.
D) $2,500,000.
E) $20,000,000.
C
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Fill in the blank: By 2011, U.S. GDP was approximately ________ times greater than it had been in 1820, while GDP in India was approximately ________ times greater than it had been in 1820
A) 50; 40 B) 775; 10 C) 200; 85 D) 315; 700 E) 5; 10
Economic theory in general, and trade theory in particular are replete with equivalencies
For example, it is argued that for any specific tariff one can find an equivalent ad valorem tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorem tariff are not equivalent. Discuss conditions or situations when a tariff and a quota are not equivalent.
The value (purchasing power) of each unit of money
a. is largely independent of the money supply. b. tends to increase as the money supply expands. c. increases as the general level of prices rise. d. is inversely related to the general level of prices.
Which of the following is not true concerning a currency bailout?
A. The International Monetary Fund will bail out any nation with a devaluing currency. B. The expectation of a bailout can encourage policies that lead to a currency crisis. C. It can help avoid a domino effect of depreciating currencies in other economies. D. It occurs when money is lent to an economy to increase or maintain the value of its currency.