Refer to the graph below, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be:
A. $400, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $80
B. $240, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $80
C. $400, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $80
D. $240, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $120
A. $400, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $80
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A) only the cost of labor and materials. B) only the implicit costs of the business. C) the cost of all the factors of production the firm employs. D) only the explicit costs the firm must pay. E) all of the firm's costs including its normal profit and its economic profit.
The Fed seeks to promote stability of financial markets because
A) resources are lost when there is not an efficient matching of savers and borrowers. B) they want to lift the self-esteem of workers. C) unstable markets result in increased efficiency. D) Congress directed them to do so by the Employment Act of 1946.
Economics is most precisely defined as
A) a study of what people need to survive. B) a study of how culture evolves in different geographic areas. C) the same as the study of finance and management. D) the study of how people make choices.
If there are many firms participating in a market, the market is either
a. an oligopoly or monopolistically competitive. b. perfectly competitive or monopolistically competitive. c. an oligopoly or perfectly competitive. d. an oligopoly or a cartel.