Refer to the following graph.
With an effective price ceiling at $3, the effect is an implicit tax on:
A. consumers equal to $80.
B. suppliers equal to $60.
C. consumers equal to $60.
D. suppliers equal to $80.
Answer: B
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________ in the United States ________ in most European countries
A) GDP per hour; is greater than GDP per hour B) Average weekly hours; are greater than average weekly hours C) The Okun Gap; is equal to the Okun Gap D) The Lucas Wedge; is greater than the Lucas Wedge E) Both A and B are true.
Suppose the world price of coffee is $3 per pound and Brazil's domestic price of coffee without trade is $2 per pound. If Brazil allows free trade, will Brazil be an importer or an exporter of coffee?
The existence of money makes trade easier. How is it that money can also increase the standard of living?
The case for free trade is based on the
A. argument for a diversified economy. B. theory of balanced growth. C. theory of comparative advantage. D. theory of absolute advantage.