Refer to the information provided in Figure 33.4 below to answer the question(s) that follow.
Figure 33.4Refer to Figure 33.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed, tariff revenue in this country will be
A. $50.
B. $250.
C. $500.
D. $750.
Answer: C
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Which of the following is true?
a. In low-income countries, less than 5 percent of those 15 and older were illiterate in 2007 b. In middle-income countries, 17 percent of those 15 and older were illiterate in 2007 c. In high-income countries, 38 percent of those 15 and older were illiterate in 2007 d. Education bears little relationship to economic development in high income countries e. Education is more important to the economic development of low income countries than it is to high income countries
An agreement among firms in a market about quantities to produce or prices to charge is called
a. collusion. b. Nash equilibrium c. dominant strategy. d. behavioral economics.
In an attempt to boost enrollment, in January 1996, a private college in Iowa offered free tuition for seniors graduating from high school in the county where it is located. For students who accept the offer, how does this offer affect the opportunity cost of attending college?
a. The opportunity cost is not changed, since lost earnings are still a factor. Incorrect. Please review Top Ten Concept # 1. b. The opportunity cost is now zero for the typical student. c. The opportunity cost is very low, because the only cost is for books and school supplies. d. The opportunity cost is not changed, since tuition is not a factor in computing opportunity cost. e. The opportunity cost is lower than if tuition were charged, but there is still a cost.
Which of the following formulas is used to find the cumulative increase in AD from a particular fiscal stimulus?
A. The multiplier × fiscal stimulus. B. Fiscal stimulus ÷ MPC. C. MPC × fiscal stimulus. D. Fiscal stimulus ÷ the multiplier.