Refer to the diagram above, which represents a country's supply and demand for an internationally traded good
If PW is the world price, and a foreign country engages in dumping by selling at P1, the country's producer surplus will ________ by ________. A) increase; abcd
B) decrease; abcd
C) increase; bcd
D) decrease; a
D
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A price support directly sets the
A) amount of production. B) subsidy the government must receive from producers. C) equilibrium quantity. D) lowest price for which the good may be sold. E) highest price for which the good may be sold.
______________—a term referring to when a given percent price change in price leads to an equal percentage change in quantity demanded or supplied.
a. Infinite elasticity b. Zero inelasticity c. Constant unitary elasticity d. Perfect elasticity
Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
A. MPC ? 1. B. (MPC ? 1) / MPC. C. 1 / MPC. D. 1 ? [1 / (1 ? MPC)].
Which factor will increase the demand for loanable funds?
A. A change in the tax law to exempt savings from taxation B. Expansion of social insurance to cover more fully the cost of retirement C. A general business recession that produces high rates of unemployment D. A technological advance that increases returns on investments