The increase in the price of sugar created by the tariff will lead domestic consumption to fall by ________ tons per year, compared to when the economy is open without the tariff.
A. 40
B. 20
C. 30
D. 10
Answer: B
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he United States' economy was most depressed in
A. 1923. B. 1933. C. 1943. D. 1953.
If consumers paid an amount for any good that reflected the value of the total benefits they receive from consuming it, then
a. consumer surplus would be at a maximum b. consumer surplus would be equal to zero c. total revenue would equal variable cost d. consumer surplus would equal producer surplus e. producer surplus would exceed consumer surplus
If the unemployment rate is 5 percent (full employment), the United States economy is operating
A. inside the production curve. B. on the production curve. C. outside the production curve.
What can we do to deal with the externalities associated with public goods and common resources?
a) Private markets will lead to an efficient allocation of resources. b) Government intervention can potentially raise economic well-being. c) Private markets will correct for the gain or loss to consumer surplus. d) Government intervention can completely eliminate the free-rider problem.