The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Suppose a free market exists. An import quota of 30 units would
A) cause consumer surplus to fall by "e."
B) cause social welfare to fall by $30.
C) increase producer surplus by "d."
D) have no effect.
D
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In Econland population and average labor productivity are constant. If a larger proportion of the population enters retirement, then total output will ________ and output per person will ________.
A. decrease; decrease B. remain constant; remain constant C. increase; increase D. decrease; remain constant
Fixing the insolvency problem caused by the Great Recession, the government was reluctant to infuse equity into financial institutions because:
a. It would transfer the problem to the government but may not solve the underlying causes. b. Equity infusions had to be funded, and the government already had a major debt problem. c.The government could be accused of nationalizing the U.S. financial system. d. All of the above.
Select the graph above that best shows the change in the market specified in the following situation: In the market for leather coats, when leather coats become more fashionable among young consumers.
a. Graph A b. Graph B c. Graph C d. Graph D
Public Broadcasting, in its fund drives, often appeals to viewers by saying, "without you, there will be no Big Bird." This is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. increase; smaller B. increase; larger C. reduce; smaller D. reduce; larger