Based on Figure 6.1, given a tariff of $0.25 per bushel on soybean imports, how much will domestic production increase?
A) Domestic firms will increase output by 10 million bushels.
B) Domestic firms will increase output by 20 million bushels.
C) Domestic firms will increase output by 70 million bushels.
D) Domestic firms' production will not be changed by the tariff.
A
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A country has $3 billion of domestic investment and net exports of -$2 billion. What is its saving?
a. -$1 billion b. -$2 billion c. $1 billion d. $2 billion
A rational individual will never consume a unit of a good if its
A. marginal utility is negative. B. marginal utility is diminishing. C. marginal utility is increasing. D. marginal utility is greater than the price of the good.
If the tax multiplier is -15 and taxes are increased by $150 billion, output
A. increases by $10 billion. B. increases by $2,250 billion. C. falls by $2,250 billion. D. falls by $10 billion.
A decrease in the supply of steel results in a shortage of steel at the original equilibrium price. Explain how market forces will act to eliminate the shortage
What will be an ideal response?