Country A imports 1,000 cars per month. After imposing a $50 per car tariff, imports fall to 800 cars per month. How much does Country A's government collect in tariff revenue?
A) $40,000 B) $90,000 C) $10,000 D) $60,000 E) $50,000
A
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If the demand curve and the supply curve for a good are straight lines, then the deadweight loss that results from a tariff is represented on the supply-and-demand graph by
a. the area of one triangle. b. the area of one rectangle. c. the combined areas of two different triangles. d. the combined areas of two different rectangles.
Assume that rents flow clockwise in a circular economic flow diagram. This implies that land flows:
A. clockwise and profits flow counterclockwise. B. clockwise and capital flows counterclockwise. C. counterclockwise and capital flows clockwise. D. counterclockwise and profits flow clockwise.
In the mid-1970s, the price of oil rose dramatically. This
A. shifted aggregate supply left. B. caused the U.S. prices to fall. C. shifted aggregate supply right. D. All of these responses are correct..
Refer to the graph shown. A movement from D to B is most likely to be caused by:
A. a decrease in input prices. B. a decrease in import prices. C. a decrease in aggregate demand. D. an increase in expected inflation.