If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's consumers end up
A. paying a higher price for the good than they otherwise would.
B. consuming more of the good than they otherwise would.
C. having a higher standard of living than they otherwise would.
D. paying a lower price for the good than they otherwise would.
Answer: A
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A money supply increase in the New Keynesian model is not neutral because
A) consumers are fooled into working harder. B) the real interest falls, the quantity of output demanded rises, and firms supply more output. C) productivity rises, increasing output supply. D) bank lending rises.
Americans choose cola over other flavors 70 percent of the time. Analysts say this is because cola's flavor is more robust and durable. Orange soda, for example, suffers from flavor fatigue faster than cola. Also, because cola contains caffeine, people may be addicted to the stimulant. Which panel in Figure 5-1 best illustrates these facts?
a. 1
b. 2
c. 3
d. 4
The firm's most efficient output would be
A. 70 units.
B. 80 units.
C. 90 units.
D. 100 units.
An import is a product:
A. produced in and purchased by residents of the home country. B. produced in and sold to the residents of a foreign country. C. produced in the home country and sold in another country. D. produced in a foreign country and purchased by the residents of the home country.