Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
If the government provides a subsidy of $500 per ton, then the cost of subsidy, which must be borne by taxpayers, will be ________ per day.
A. $2,000
B. $5,000
C. $6,000
D. $500
Answer: C
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Monetarists
A. argue for the use of discretionary monetary policy. B. contend that government policies have reduced the stability of the economy. C. believe a capitalistic economy is inherently unstable. D. believe the markets in a capitalistic economy are largely noncompetitive.
Country A's overall balance in the balance of payments equals:
a. Current account minus the financial account. b. Reserves account minus the current account. c. Reserves account plus the capital account plus the current account. d. Current account plus capital account plus the financial account minus the reserves account. e. Reserves account plus the financial account.
Refer to the information provided in Figure 30.2 below to answer the question(s) that follow.
Figure 30.2Refer to Figure 30.2. Labor productivity at time t3 is
A. larger than labor productivity at time t2. B. less than labor productivity at time t4. C. larger than labor productivity at time t1. D. larger than labor productivity at time t2, but less than labor productivity at time t4.
Use the following graph for a competitive market for a product where the government has set a price floor of 0C to answer the question below. 
What quantity will the sellers be able to sell after the imposition of the price floor?
A. 0G B. CB C. 0F D. 0E