Spain is an importer of computer chips, taking the world price of $12 per chip as given. Suppose Spain imposes a $5 tariff on chips. As a result,
a. Spanish consumers of chips and Spanish producers of chips both gain.
b. Spanish consumers of chips gain and Spanish producers of chips lose.
c. Spanish consumers of chips lose and Spanish producers of chips gain.
d. Spanish consumers of chips and Spanish producers of chips both lose.
c
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If the bidders at an oral auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8 b. $7 c. just over $7 d. just under $7
According to the graph shown, the government can restrict trade by imposing a quota of:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
A. 350.
B. 900.
C. 1150.
D. 1500.
A trade-off refers to:
A. allowing the government and other organizations to choose for us. B. sacrificing one thing for another. C. deciding who consumes the products produced in an economy. D. holding other variables fixed.
The lifetime income distribution of income is a ________ accurate indicator of the degree of economic inequality than the distribution of ________
A) less; of annual income B) more; of annual income C) less; of wealth D) less; annual Lorenz curves