For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that
a. an import quota has no effect on consumer surplus, while a tariff decreases consumer surplus.
b. an import quota has no effect on producer surplus, while a tariff decreases producer surplus.
c. a tariff raises total surplus, while an import quota does not.
d. a tariff raises revenue for that country's government, while an import quota does not.
d
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Suppose I buy 3 cups of coffee at the price of $1 each. I would have been willing to pay $3 for that marvelous first cup, pay even $2 for the second cup, and $1—the market price —for the third cup. My consumer surplus is
a. $6 b. $5 c. $3 d. $2 e. $1
A(n) _______________ good is one in which as income rises or falls, there is no change in the demand for the good
A) normal B) inferior C) neutral D) substitute E) complementary
Which of the following formulas correctly measures the profit of a monopoly?
A. ? = (P ? ATC)Q B. ? = TR ? TC and ? = (P ? ATC)Q C. ? = TR ? TC D. ? = (P ? AVC)Q
According to the law of increasing opportunity cost,
a. opportunity cost rises as technology improves b. the production possibilities frontier is a straight line c. opportunity cost rises as society produces more of a good or service d. the production possibilities frontier is convex with respect to the origin (that is bowed toward the origin) e. monetary costs rise as opportunity cost rises