The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The imposition of a tariff on computers caused economic well-being in the country to ________ by
A. fall; $6 million.
B. rise; $34 million.
C. fall; $34 million.
D. fall; $4 million.
Answer: A
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Assume Congress decides that oil companies are making too much profit and decides to tax oil companies for each gallon of gasoline produced. This would
A) shift the marginal cost curve up. B) shift the marginal cost curve down. C) shift the average fixed cost curve up. D) shift the average fixed cost curve down.
If the government sets a specific tax and an ad valorem tax so that they raise the same amount of tax revenue, why does the ad valorem tax reduce output less than the specific tax?
What will be an ideal response?
Which of the following categories of unemployment arises from macroeconomic causes?
a. Temporary unemployment b. Underemployment c. Structural unemployment d. Frictional unemployment e. Cyclical unemployment
A bank's total reserves consist of
A. vault cash and Treasury bills. B. vault cash only. C. all assets. D. vault cash and reserve deposits held at a regional Federal Reserve Bank.