The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure
The tariff is equal to ________, and the price U.S. consumers pay _______compared to the price paid when there was free trade.
A) $2; increases
B) $2; decreases
C) $14; increases
D) $14; decreases
E) $12; increases
A
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Government purchases include all of the following except:
A. the construction of a new court house built by a county government. B. the purchase of new military hardware by the U.S. Army. C. social security benefits paid by the federal government. D. the salary paid to an elementary school teacher employed by a local public school district.
Which of the following would not be counted in the calculation of GDP?
A. Buying a brand new car. B. Paying for a flight to Las Vegas. C. Government spending on social security. D. Paying for a maid service to come clean your house.
Which of the following would not lead to a change in demand for coffee?
a. a change in the price of coffee b. a change in consumer preferences for coffee c. a change in the price of tea d. a change in consumers’ disposable incomes
Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%. Which type of investor would prefer an investment with a guaranteed return of 5%?
A) risk loving investor B) risk neutral investor C) risk averse investor D) risk is not relevant in this example