Which statement is false?
A. Our balance of payments is the entire flow of U.S. dollars and foreign currencies into and out of the country.
B. Our trade balance is just the difference between our imports and our exports.
C. Our trade balance has been negative since the mid-1970s.
D. None of these statements are false
D. None of these statements are false
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Transfer payments resemble
A. negative taxes. B. positive taxes. C. exports. D. none of these.
Refer to Figure 7-5. Fenwick currently both produces and imports pistachios. The government of Fenwick decides to restrict international trade in pistachios by imposing a quota that allows imports of only 5 million pounds each year
Figure 7-5 shows the estimated demand and supply curves for pistachios in Fenwick and the results of imposing the quota. Answer questions a-j using the figure. a. If there is no quota what is the domestic price of pistachios and what is the quantity of pistachios demanded by consumers? b. If there is no quota how many pounds of pistachios would domestic producers supply and what quantity would be imported? c. If there is no quota what is the dollar value of consumer surplus? d. If there is no quota what is the dollar value of producer surplus received by producers in Fenwick? e. If there is no quota what is the revenue received by foreign producers who supply pistachios to Fenwick? f. With a quota in place what is the price that consumers of Fenwick must now pay and what is the quantity demanded? g. With a quota in place what is the dollar value of consumer surplus? Are consumers better off? h. With a quota in place what is the dollar value of producer surplus received by producers in Fenwick? Are domestic producers better off? i. Calculate the revenue to foreign producers who are granted permission to sell in Fenwick after the imposition of the quota. j. Calculate the deadweight loss as a result of the quota.
The exchange rate is
a. the rate at which one currency is traded for another b. always constant c. the tax a foreign nation imposes to change its currency into dollars d. irrelevant to those who do not travel to foreign countries e. controlled by the Federal Reserve
A recent news report lamented the plight of corn farmers in Wisconsin due to a severe drought. Which of the following best describes the effect on corn farmers in Minnesota, where sufficient rainfall occurred?
a. Their revenue increases because price increases and demand is elastic. b. Their revenue increases because price increases and demand is inelastic. c. Their revenue decreases because price decreases and demand is inelastic. d. Their revenue decreases because price increases and demand is elastic.