If the import supply curve is horizontal at the world price:
A. a tariff will lower domestic aggregate surplus.
B. a tariff will increase domestic aggregate surplus.
C. a tariff will not change domestic aggregate surplus.
D. a quota will increase domestic aggregate surplus.
A. a tariff will lower domestic aggregate surplus.
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If Congress passes legislation to increase government purchases to counter the effects of a recession, then this would be an example of a(n)
A. nondiscretionary fiscal policy. B. supply-side fiscal policy. C. contractionary fiscal policy. D. expansionary fiscal policy.
The market structure that is most different from the model of perfect competition is:
A) monopolistic competition. B) monopsony C) oligopoly. D) monopoly.
E&S Cooling Co installs air conditioning systems in new houses for homebuilders, and replacement systems for homeowners. Sales of which systems are included in this year's GDP?
a. Sales of replacement systems b. Sales of both systems c. Sales of systems in new houses d. Neither system would be included, because they are always intermediate goods.
In order to hire additional laborers, a monopsony must
A. raise the wage rate. B. lower the supply of labor. C. advertise for the labor. D. do nothing.