Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,
A. the quantity of apples supplied by U.S. firms will increase by 2 million apples per day.
B. the price of apples in the United States will increase to 40 cents per apple.
C. the quantity of apples demanded will be reduced by 2 million apples per day.
D. all of the above
Answer: D
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Refer to the figure above. What is the maximum possible social surplus?
A) $100 B) $150 C) $225 D) $375
Net investment
A) equals gross investment plus depreciation. B) is the only measure of investment used to calculate GDP. C) equals gross investment minus depreciation. D) is equivalent to the existing capital stock in the economy.
The government has traditionally dealt with externalities by directive rather than by price
Indicate whether the statement is true or false
When there is unplanned inventory investment, aggregate planned expenditure is __________ real GDP and actual investment is __________ planned investment
a) greater than; greater than b) greater than; less than c) less than; greater than d) less than; less than