Though both tariffs and quotas reduce consumer surplus and increase producer surplus in the importing country, the losses in consumer surplus are larger than the gains in producer surplus
Indicate whether the statement is true or false
true
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Refer to Edgeworth Box Economy. Analysis of an Edgeworth box economy shows that a competitive equilibrium
a. must be Pareto optimal. b. can be located anywhere along the contract curve. c. may lie anywhere within the region of mutual advantage. d. must lie to the southeast of the endowment point.
Which function of money represents a measure for stating the prices of goods and services?
A) medium of exchange B) unit of account C) store of value D) means of payment
If a bank holds $2000 in demand deposits and the required reserve ratio is 0.15, how much can the bank lend out?
a. $2,000 b. $1,700 c. $300 d. $150 e. $2,300
The key element in preserving a monopoly is
a. government subsidy of critical enterprises. b. keeping potential rivals out of the market. c. guaranteeing availability of substitute products. d. increased advertising expenditure.