How are government revenues changed by the introduction of tariffs on imported shoes as shown in Exhibit 1?
a. loss of areas c, d, e, and f
b. loss of areas d and e
c. gain of area c
d. gain of area e
d. gain of area e
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Once a country has a comparative advantage in producing a product, it cannot lose that advantage
Indicate whether the statement is true or false
If the labor supply is unchanged, an increase in the demand for labor will
A) increase the equilibrium wage and increase the quantity of jobs demanded. B) increase the equilibrium wage and decrease the number of workers employed. C) decrease the equilibrium wage and increase the number of workers employed. D) increase the equilibrium wage and increase the number of workers employed.
What is the shape of the total revenue curve derived from a horizontal demand curve?
A) Horizontal B) Vertical C) U-shaped D) Upward sloping, with a positive slope