The figure below represents the U.S. market for steel imports from South Korea. The South Korean government provides an export subsidy of $25 per ton, and South Korean firms use the subsidy to reduce their export price to the United States to $375 per ton.
The change in national welfare in the United States when the South Korean government provides an export subsidy of $25 per ton is
A. + $375 million.
B. + $4.125 billion.
C. -$4.5 billion.
D. - $3.75 billion.
Answer: B
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Dumping occurs when a firm sells goods abroad at a price below their cost and below the price charged in their domestic market
Indicate whether the statement is true or false
Real wages have fallen since 1973 for all the following reasons except
A. millions of high paying manufacturing jobs have migrated to low wage countries. B. the slowing down of productivity growth. C. the switch from high paying manufacturing jobs to lower paying service sector jobs. D. All of these choices are reasons.
Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. If Dawn proposed $5 million while Terry proposed $9 million, Dawn will get ________ thousand votes while Terry gets ________ thousand votes.
A. 46; 44 B. 46; 74 C. 61; 59 D. 76; 44
Looking at the macroeconomic statistics for Friedmanland, you discover that at the beginning of the year, the national money supply was equal to $400 million and by the end of the year it was equal to $420 million. You also found out that the inflation rate in Friedmanland was 7%. In this case, you would expect the LM curve to
A. shift up and to the left as the real money supply falls. B. shift down and to the right as the real money supply falls. C. shift up and to the left as the real money supply rises. D. shift down and to the right as the real money supply rises.