A country's net welfare will increase when it imposes a tariff on a foreign monopolist if its:
a. terms-of-trade gain is greater than its increase in tariff revenues.
b. terms-of-trade gain is less than its increase in tariff revenues.
c. terms-of-trade gain is greater than its lost consumer surplus.
d. increase in tariff revenues is greater than its lost consumer surplus.
Ans: c. terms-of-trade gain is greater than its lost consumer surplus.
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When a 13-year-old girl consents to babysit John's children for $5 per hour, economists assume
A) the girl was made worse off while John was made better off. B) the girl was made better off while John was made worse off. C) both parties were made worse off. D) both parties were made better off.
Why is it difficult for the market to deliver socially efficient quantities of goods like clean air or street lighting?
What will be an ideal response?
Private costs are
A) external costs borne by private firms. B) explicit costs rather than implicit costs. C) costs borne by private members of society rather than governmental bodies. D) costs borne solely by the individuals who incur them.
A college dean has a __________ opportunity cost of __________ than a college student working in a minimum-wage job
a. lower; leisure b. lower; nonmarket work c. lower; market work d. higher; nonmarket work e. higher; market work