If U.S. quotas on imported sugar were eliminated,
A. The world price of sugar would rise.
B. The supply of sugar in the United States would shift to the right and sugar prices would fall.
C. The demand for sugar in the United States would shift to the left and prices would fall.
D. The supply of sugar in the United States would shift to the left and prices would rise.
Answer: B
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Expansionary policies are government policies that
A) decrease aggregate supply. B) increase aggregate demand. C) decrease aggregate demand. D) increase aggregate supply.
The ________ is defined as the ratio of the dollar price of a basket of goods and services in the U.S., divided by the dollar price of the same basket of goods and services in a foreign county
A) real exchange rate B) ordinal exchange rate C) nominal exchange rate D) expected exchange rate
In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The loss of producer surplus
A) is smaller than the gain in consumer surplus. B) is larger than the gain in consumer surplus. C) is the same size as the gain in consumer surplus. D) could be smaller than, larger than, or the same size as the gain in consumer surplus.
For a perfectly competitive firm, marginal revenue product is equal to:
a. price minus marginal cost. b. price times marginal revenue. c. price times marginal product. d. none of these.