Refer to the figure below. The socially optimal level of output could be achieved by imposing a tax on each unit equal to the distance ________. 
A. EG
B. EF
C. AC
D. BC
Answer: C
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If an import quota is imposed on imports of shrimp into the United States, U.S. consumer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
An example of a horizontal merger would be a merger between firms
A) approximately the same size. B) growing at approximately the same rate. C) located in the same geographic area. D) selling approximately the same products. E) supplying one another with inputs.
Which income distribution is more unequal and why: the income distribution in the United States or in the entire world?
What will be an ideal response?
The quantity of good M is measured along the vertical axis, and the quantity of good N is measured along the horizontal axis. If the prices of both goods M and N declines by 50% each, then the budget line
A) shifts inward to the left by 50%. B) shifts outward to the right by 50%. C) shifts outward to the right by 100%. D) rotates clockwise by 180 degrees.