A quota will reduce consumer welfare when
A) the quota is less than the amount purchased without the quota.
B) the quota is greater than the amount purchased without the quota.
C) the quota is on a good with high income elasticity.
D) Quotas always reduce consumer welfare.
A
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When an economist considers welfare evaluations, he is looking at
A) whether a policy increases social welfare. B) the ability of an economy to take care of the unemployed. C) price inertia. D) new open economy macroeconomics.
The Bretton Woods agreements
a. established a system of fixed exchange rates based on the free convertibility of the U.S. dollar into gold. b. established a system of fixed exchange rates based on the gold standard. c. permitted countries with a balance of payments deficit to make regular devaluations of their currencies. d. established GATT to police and manage exchange rates.
Government-produced goods are added to GDP at
A. their market value. B. the value they have to their users. C. the value of the inputs used to produce them. D. the value Congress places on them.
Total revenues reach a maximum when
A) demand is elastic. B) demand is inelastic. C) demand is unit-elastic. D) price elasticity is at a minimum.