The figure below represents the U.S. market for steel imports from Korea. The Korean government provides an export subsidy of $25 per ton, and Korean firms use the subsidy to reduce their export price to the United States to $375 per ton.
Suppose the United States imposes a countervailing duty on the imports of steel at the rate of $25 per ton. What is the amount of revenue collected by the U.S. government by imposing this countervailing duty?
A. $3.75 billion
B. $750 million
C. $4.125 billion
D. $375 million
Answer: A
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Economies with higher expected inflation rates have short-run Phillips curves that are
A) further to the right. B) upward sloping. C) further to the left. D) closer to being horizontal. E) always vertical.
Refer to Figure 10.1. When each player plays his or her dominant strategy, society is poorer and the payoffs are smaller by ________ units than if each player had played the strategy with the ideal outcome for both the individual players and for the
group as a whole. A) 6 B) 12 C) 18 D) 30
Annual changes in the level of investment in the U.S. during the last 40 years have been
a. highly volatile b. positive, moderate, and steady c. positive, dramatic, and steady d. close to zero, but the level has been high e. slightly negative, that is, falling steadily, but still high relative to the levels of the four decades before the 1960s.
Walter puts money in a savings account at his bank earning 3.5 percent. One year later he takes his money out and notes that while his money was earning interest, prices rose 1.5 percent. Walter earned a nominal interest rate of
a. 3.5 percent and a real interest rate of 5 percent. b. 3.5 percent and a real interest rate of 2 percent. c. 5 percent and a real interest rate of 3.5 percent d. 5 percent and a real interest rate of 2 percent