Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
With a Pt?Pc per-unit tariff, per-unit revenue received by domestic and foreign producers respectively will be
A. Pa and Pt.
B. Pa and Pc.
C. Pc and Pa.
D. Pt and Pc.
Answer: D
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The additional revenue associated with hiring one additional unit of some factor input, such as labor, is called
A) marginal cost. B) marginal revenue product. C) marginal factor cost. D) marginal physical product.
The discount rate is the interest rate that
a. banks charge one another for loans. b. banks charge the Fed for loans. c. the Fed charges banks for loans. d. the Fed charges Congress for loans.
The index of intra-industry trade is calculated as:
a. the minimum of imports and exports divided by the average of imports and exports. b. the maximum of imports and exports divided by the sum of imports and exports. c. imports divided by exports. d. imports plus exports divided by the average of imports and exports.
Use the figure below to answer the following question.
The figure shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S2?
A. an increase in the price of wheat B. a decrease in the price of water C. an increase in the price of water D. a new tax on wheat production