According to the graph shown, the amount of deadweight loss created by the imposition of a tariff is area:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. IL
B. JK
C. IJKL
D. FGJK
A. IL
You might also like to view...
If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p = MC B) MR = MC C) p ? AVC D) All of the above
Which of the following statements about price discrimination is correct?
a. Price discrimination is always more profitable than charging a single price. b. A price discriminator would want to charge the highest price to those customers with the most elastic demand for his product. c. To be successful, a price discriminator must assure that items can be resold between high- and low-price groups. d. To maximize profit, a price discriminator distinguishes groups with different demands and charges higher prices to those with the more inelastic demand.
Refer to the graph showing the demand for books. The quantity demanded when price is $16.00 is:
A. 4 books. B. 8 books. C. 2 books. D. 6 books.
For every 1 percentage point that the actual unemployment rate exceeds the natural rate, a 2 percentage point negative GDP gap occurs. This is a statement of:
A. Taylor's rule. B. Okun's law. C. Say's law. D. the Coase theorem.