Figure 17-13
In , if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, which area represents the United States' net loss as a result of the tariff?
a.
a + b + c + e
b.
b + c + e
c.
b + c
d.
c + e
e.
b + f
e
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The income effect of a wage increase is observed when
A) the higher wage income causes workers to take more leisure and work less. B) the higher wage income causes workers to take less leisure and work more. C) leisure's higher opportunity cost causes workers to take less leisure and work more. D) leisure's higher opportunity cost causes workers to take more leisure and work less.
Which of the following institutions is responsible for check processing?
a. U.S. Department of the Treasury b. Comptroller of the Currency c. Federal Reserve d. Federal Deposit Insurance Corporation
Professor Plum, who earns $100,000 per year, read in the paper today that the university pays its basketball coach one million dollars per year in exchange for his agreement to remain at the university for at least three more years. The coach earns more than Professor Plum because:
A. universities value sports more than academics. B. the coach has more human capital than does Professor Plum. C. the coach is able to earn economic rent due to his unique talents. D. the demand for sporting events exceeds the demand for college degrees.
Which of the following are exempt from the antitrust laws?
A. all professional athletes B. colleges and universities C. deregulated industries D. labor unions