How does a quota affect the consumer surplus and the producer surplus from the imported good? Is the overall economy helped or harmed by quotas? Briefly explain your answers
What will be an ideal response?
A quota raises the price of the good so that domestic consumption decreases and domestic production increases. As a result, domestic consumer surplus decreases and domestic producer surplus increases. The overall economy is harmed. The decrease in consumer surplus is larger than the increase in producer surplus so a deadweight loss is created.
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When taxes are cut, aggregate demand ________ and aggregate supply ________
A) decreases; increases B) increases; increases C) increases; does not change D) increases; decreases E) decreases; decreases
In the production of goods and services, trade-offs exist because
A) not all production is efficient. B) society has only a limited amount of productive resources. C) buyers and sellers often must negotiate prices. D) human wants and needs are limited at a particular point in time.
Payoffs are:
A. things that are only enjoyed by the winner. B. always monetary. C. bribes made to gain some advantage unfairly during a game. D. the rewards that come from particular actions.
Starting salaries for female OB/GYNs are higher than those of male OB/GYNs. What is the best explanation for this?
a. Female OB/GYNs have more human capital than male OB/GYNs. b. Female OB/GYNs are smarter than male OB/GYNs. c. More males are in OB/GYN residency programs than females. d. The demand for female OB/GYNs is greater than the demand for male OB/GYNs. e. The demand for female OB/GYNs is less than the demand for male OB/GYNs.