When the small home nation imposes a tariff of $10, the domestic price:
a. rises by more than $10.
b. rises by $10.
c. rises by less than $10.
d. does not change.
Ans: b. rises by $10.
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The above figure shows the U.S. market for chocolate. With no international trade, producer surplus is equal to
A) area A + area B + area C + area D. B) area B + area C + area D + area E. C) area B + area C + area D. D) area C + area D. E) area E.
The U.S. Health Resources and Services Administration (HRSA) forecasts that in 2020
A) the number of doctors in the United States will decrease and the number of doctors needed will increase. B) there will be a surplus of doctors in the United States. C) there will be a shortage of doctors in the United States. D) the number of doctors in the United States will increase and the number of doctors needed will decrease.
The primary reason why individuals are willing to pay entrepreneurs to organize production is
a. that they have to guarantee that the entrepreneur will make a profit b. they avoid taxation when activities are organized by someone else c. that it is better for businesses to pay taxes than individuals d. that it reduces transaction costs e. that entrepreneurs are more vulnerable in the case of the owner
Caleb teaches economics at Yucky State University and is paid $50,000 per year. He also provides economic forecasts for local business for which he charges $100 per hour. Which of the following is true?
a. all of Caleb's income is salary b. some of Caleb's income is salary and some is personal interest c. all of Caleb's income is proprietor's income d. some of Caleb's income is salary and some is proprietor's income e. all of Caleb's income is personal interest