Oscorp Inc, a manufacturer of smartphones, is willing to receive $3,000 for each smartphone. The equilibrium market price is $4,000 per smartphone. Which of the following would be the best situation for Oscorp Inc?
a. Consumers being willing to pay $3,000 per smartphone
b. Consumers being willing to pay $2,000 per smartphone
c. The equilibrium market price changing to $4,500 per smartphone
d. The equilibrium market price changing to $3,500 per smartphone
c
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This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy were operating under free trade and then imposed a tariff, the overall impact on surplus would be a net:
A. gain of IJKL. B. loss of IJKL. C. gain of FGHIJKL. D. loss of IL.
Suppose a country is pursuing a fixed exchange rate regime with imperfect capital mobility. The ability of that country to move its domestic interest rate while maintaining its exchange rate will depend on
A) the degree of development of its financial markets. B) the degree of capital controls. C) the amount of foreign exchange it holds. D) all of the above E) both A and B
A constant marginal rate of substitution between two goods implies that they are
A) perfect complements. B) perfect substitutes. C) independent goods. D) unattainable.
The Monetary Control Act of 1980:
a. extended the Fed's authority to impose required-reserve ratios on all depository institutions. b. excluded the required-reserve ratios as an instrument of short-term policy. c. provided the Fed with the authority to use open market operations. d. all of the above. e. none of the above.