How is consumer surplus changed by the introduction of tariffs on imported shoes as shown in Exhibit 1?
a. loss of areas c, d, e, and f
b. loss of areas d and e
c. gain of area c
d. gain of area e
a. loss of areas c, d, e, and f
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In the circular flow model, the value of total income for an economy ________ the value of total production
A) equals B) is greater than C) may be greater than or less than D) is less than
Membership in unions decreased rapidly in the 1980s
Indicate whether the statement is true or false
An important variable that is left out of economic models is
a. implicit costs. b. excess profits. c. entrepreneurship. d. the opportunity cost of resources.
The final element of a financial crisis is
a. an economic downturn. b. a decline in confidence in financial institutions. c. declining prices of real estate or other assets. d. a vicious circle.