If the government imposes a quantity restriction on how many shoes can be imported into a country, and the total quantity is below the market equilibrium quantity:
A. total surplus in the market increases.
B. total surplus in the market decreases.
C. total surplus in the market does not change.
D. total surplus may increase or decrease, depending on whether costs are increasing or decreasing in production.
Answer: B
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What will be an ideal response?
In general economic environments that correspond to lower levels of planned aggregate expenditure for a given level of Y have PAE curves that are:
A. higher on the expenditure diagram. B. lower on the expenditure diagram. C. at multiple points on the diagram. D. equivalent at point in the diagram.
If Chris pays $500 for a bond that will return $750 in one year, what is the interest rate?
a. 50 percent b. 10 percent c. 25 percent d. 250 percent e. 33 percent
If the demand for workers with doctorate degrees in economics increases, we would expect
a. the wages of economists to increase in the short run and the number of economists employed to increase in the long run. b. the supply of economists to increase in the short run and their wages to rise in the long run. c. a rapid increase in the supply of economists, causing wages to remain constant. d. the wages of economists to decrease in the short run and the number of economists employed to increase in the long run.