The figure below shows the international market for moped. DM is a country's demand for imports curve and SX is the foreign export supply curve. The importing country now imposes an import quota of 0.9 million, with the licenses given for free to the existing import distributors.
As a result of the quota being imposed on moped imports by this country, the world as a whole will
A. lose $7 million.
B. gain $10 million.
C. gain $31.5 million.
D. lose $17 million.
Answer: D
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Inflation tends to redistribute income from
A) savers to borrowers. B) borrowers to savers. C) homeowners to landowners. D) parents to students.
Jack is near retirement and worried that if the stock market falls he will not be able to wait to take his funds out, and will have to sell at the bottom of the market
Richard thinks the probability of a stock market downturn is the same, but he is only 40 and could therefore wait for another turnaround. They face the same budget line. Jack's risk/return indifference curve A) will be concave; Richard's will be convex. B) will be convex; Richard's will be concave. C) will be tangent to the budget line at a point to the left of Richard's. D) will be tangent to the budget line at a point to the right of Richard's. E) must still be tangent to the budget line at the same point as Richard's.
Some nonprice determinants of supply are:
A. prices of related goods, technology, prices of inputs, expectations, and the number of sellers. B. consumer preferences, the price of the good, and prices of related goods. C. expectations of sellers and number of buyers in the market. D. prices of related goods, technology, and consumer preferences.
A patent gives an innovating firm how many years of legal protection from competition?
a. 1 year b. 5 years c. 10 years d. 20 years e. 23 years