The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the tariff revenue collected by the government will be ________.
A. $4,000
B. $40,000
C. $60,000
D. $24,000
Answer: D
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For a perfectly competitive firm, the marginal-revenue product curve is the same as the firm's short-run demand for labor curve.
Answer the following statement true (T) or false (F)
Frieda is at her local florist to buy a dozen roses. She is willing to pay $75 for the roses, and buys them for $75. Frieda's consumer surplus from the purchase is
A) $150. B) $75. C) $37.50. D) $0.
Discuss the values of private saving in closed and open economies
What will be an ideal response?
Points to the right of the IS schedule indicate that
a. investment plus government spending will exceed saving plus taxes. b. the amount of money supplied exceeds the amount of money demanded. c. saving plus taxes will exceed investment plus government spending. d. the amount of money demanded exceeds the amount of money supplied.