The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = $1 represents the world supply curve
If a $1 tariff is imposed on imported rice, the loss in social welfare is A) b + c + d + e.
B) a.
C) i.
D) a + c + d + e.
C
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A bond with a face value of $10,000 (and no coupon payments) is always worth
a. $10,000 b. less than $10,000 before the maturity date c. more than $10,000 if the interest rate is high enough d. $10,000 on the date of purchase e. $9,090.91 two years before the maturity date
One of the two criteria for a resource to be considered capital is that it must:
A) occur naturally. B) be part of a factory or building. C) be a skill or talent possessed by a person. D) be possible to use it to produce other goods and services.
Which of the following statements is TRUE of static tax analysis?
A. A government cannot change it tax revenues by changing the tax rate. B. A government receives lower tax revenues by raising the tax rate. C. A change in the tax rate can raise or lower tax revenues, depending on other factors. D. A government receives higher tax revenues by raising the tax rate.
All of the following are assumptions of both market and public-sector decision making EXCEPT
A) Decisions are based on majority rule. B) Decisions are motivated by individuals' self-interest. C) Opportunity costs exist in decisions. D) Choices reflect incentives faced by decision makers.