Turkey is an importer of wheat. The world price of a bushel of wheat is $7 . Turkey imposes a $3-per-bushel tariff on wheat. Turkey is a price-taker in the wheat market. As a result of the tariff,
a. Turkish consumers of wheat become worse off and Turkish producers of wheat become worse off.
b. Turkish consumers of wheat become worse off and Turkish producers of wheat become better off.
c. Turkish consumers of wheat become better off and Turkish producers of wheat become worse off.
d. Turkish consumers of wheat become better off and Turkish producers of wheat become better off.
b
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Refer to Figure 15-4. What is the price charged for the profit-maximizing output level?
A) $13 B) $21 C) $27 D) $34
In 2011, the federal government spent 9 percent of the budget on net interest. Which of the following statements regarding net interest is correct?
a. If the government pays down its debt, the amount of the budget needed for net interest decreases. b. If the government accrues more debt, the amount of the budget needed for net interest increases. c. In 2011, the federal government spent 325 billion dollars to cover interest payments on its loans. d. All of the above are correct.
Which of the following is the formula used for computing an accounting profit?
A. accounting profits = total revenue - implicit costs B. accounting profits = total revenue - (implicit + explicit costs) C. accounting profits = total revenue - explicit costs D. accounting profits = total costs - total revenue
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Two possible consumption bundles that Country A could produce are:
A. (5,000 bananas, 1,000 tomatoes) and (1,000 bananas, 5,000 tomatoes) B. (2,500 bananas, 500 tomatoes) and (1,250 bananas, 800 tomatoes) C. (5,000 bananas, 0 tomatoes) and (2,500 bananas, 500 tomatoes) D. (2,500 bananas, 750 tomatoes) and (1,250 bananas, 750 tomatoes)