Refer to the below table for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the tariff would generate government revenues of:
A. $600
B. $400
C. $800
D. $1,200
B. $400
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
If the natural unemployment rate is 5 percent, the actual unemployment rate is 8 percent, and potential GDP is $15 trillion, then according to Okun's Law, real GDP is
A) $13.8 trillion. B) $15.9 trillion. C) $13.05 trillion. D) $14.25 trillion. E) $14.1 trillion.
In the scenario above, as a result of increased advertising, Talbot's average total cost
A) falls by $20 per coat. B) rises by $50 per coat. C) rises by $30 per coat. D) falls by $40 per coat.
In order for a central planner to achieve the invisible-hand type efficiency of a free market, the planner would
A. need masses of statistics. B. be required to makes enormous calculations. C. need to be able to measure a consumer’s marginal utility in order to equate MU with MC. D. All of the above would be required.