As a result of a tariff on good X,
a. domestic producers of good X are better off because they sell more goods at a higher price.
b. domestic producers of good X are better off because they sell more goods at the same price.
c. domestic producers of good X are better off because they sell the same quantity of goods at a higher price.
d. consumers of good X are better off because more domestically produced goods are available.
a. domestic producers of good X are better off because they sell more goods at a higher price.
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Social costs are
A) costs that are borne by the government. B) the full cost borne by society whenever a resource use occurs. C) borne by individuals who incur them. D) another term for external costs.
If an economy is growing, but experiences no inflation, this means
a. aggregate demand increased, but aggregate supply did not. b. aggregate supply decreased, but aggregate demand did not. c. aggregate demand and aggregate supply increased by the same amount. d. aggregate demand and aggregate supply decreased by the same amount.
Use the following diagrams for the U.S. economy to answer the next question.
Assuming the economy is initially at full employment, which of the diagrams best portrays a recession?
A. Graphs (1) and (2) B. Graphs (1) and (3) C. Graphs (2) and (4) D. Graphs (3) and (4)
Explain how globalization impacts inflation in both the short run and the long run.
What will be an ideal response?