Based on Figure 6.1, how much revenue will the government raise from a $0.25 per bushel tariff on soybean imports?
A) The government will raise $2.5 million.
B) The government will raise $5 million.
C) The government will raise $15 million.
D) The government will raise $32.5 million.
E) The government will see no increase in income; because the country is small, foreign firms will simply not serve it after the tariff is imposed.
C
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Higher prices can discourage use/consumption, which in turn may better allocate scarce resources.
Answer the following statement true (T) or false (F)
Why do many economists rate the income tax high in efficiency and equity terms?
A government is running a budget deficit if:
A. government revenue exceeds government spending. B. imports exceed exports. C. exports exceed imports. D. government revenue is less than government spending.
A student asserts in class that the income and substitution effects lead to a decrease in the consumption of a normal good when the price decreases. Do you agree with the statement? Explain using an example
Please provide the best answer for the statement.