An export subsidy will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare
A) increase; decrease; increase; have an ambiguous effect on
B) increase; decrease; decrease; decrease
C) increase; decrease; have no effect on; have an ambiguous effect on
D) increase; decrease; have no effect on; decrease
E) increase; increase; decrease; have an ambiguous effect on
B
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Which of the following groups gain from international trade? i. producers of exported goods ii. domestic consumers of imported goods iii. workers in exporting firms
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Which of the following would result in a higher absolute value of the price elasticity of demand for a product?
A) The time period under consideration is short. B) The good is a necessity. C) The expenditure on the good is small relative to one's budget. D) A wide variety of substitutes are available for the good.
In most derivations of the aggregate expenditures model, investment is assumed to be independent of real GDP. What would be the effect on the aggregate expenditures (AE) function if investment spending were positively related to income?
a. The intercept of the AE function would rise. b. The slope of the AE function would become flatter. c. Both the slope and the intercept of the AE function would increase. d. The slope of the AE function would become steeper. e. The intercept of the AE function would increase, and its slope would become flatter.
A normal good is a good whose quantity demanded
a. rises when its price falls. b. falls when the price of a related good falls. c. falls when the consumer's total utility rises. d. rises when the consumer's real income increases.