If an import quota is imposed on imports of shrimp into the United States, U.S. consumer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) increase; not change
D
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Asarta Inc. is polluting into a nearby fishing; doing so benefits them $40,000 a year. The fishermen are unhappy as their trout are dying off. Typically, the fishermen can catch trout and sell it to a local market where they can earn about $8,000 a year. Currently, the fishermen have the rights to use the stream as they see fit. Which of the following is an optimal solution according to the Coase Theorem?
A. Asarta Inc. could pay the fishermen $8,500 and keep polluting B. There is no optimal solution given the current property rights C. The fishermen could pay Asarta Inc. $4,000 to stop them from polluting D. Asarta Inc. could pay the fishermen $7,000 and keep polluting
In the figure above, if the government provides the efficient amount of education, what is the tuition?
A) $10,000 per year B) $14,000 per year C) $8,000 per year D) $6,000 per year
If workers and firms know that the Federal Reserve is following an expansionary monetary policy, workers and firms will expect inflation to ________ and will adjust wages so that the real wage ________
A) decrease; decreases B) increase; remains unchanged C) increase; increases D) increase; decreases
The accuracy of the unemployment rate is criticized because:
A. people under 16 years of age and over 70 years of age are excluded from the data. B. people who would like to work but have given up trying to find work are not included in the number of unemployed people. C. unemployed homemakers and students who are not actively seeking employment are not included in the number of unemployed people. D. it fails to indicate how many people work at more than one job.