Refer to Figure 9-2. The increase in domestic producer surplus as a result of the tariff is equal to the area
A) C + D + G + H + I. B) C + G. C) C. D) A + C + G.
C
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Real GDP per capita
A. necessarily grows more rapidly than real GDP. B. cannot grow more slowly than real GDP. C. cannot grow more rapidly than real GDP. D. can grow either more slowly or more rapidly than real GDP.
Consider a used car market in which half the cars are good and half are bad (lemons). Suppose the average price of a good car is $9,000 and the average price of a lemon is $3,000
If rational buyers are willing to pay $6,000 for a used car, then sellers will agree to sell mostly lemons at this price. What is the term used to describe this situation? A) adverse selection B) an efficient market C) moral hazard D) economic irrationality
Refer to the above figure. Which panel is consistent with the Fed buying bonds?
A) Panel A B) Panel B C) Panel C D) Panel D
Under a managed float,
a. a central bank allows the forces of supply and demand to determine the exchange rate b. a nation can have neither a trade deficit nor a trade surplus c. a nation "pegs" its price level to a foreign currency d. a nation "pegs" its price level at some fixed value e. a central bank intervenes in the foreign exchange market to stabilize its exchange rate