With a quota, the __________ is greater than the __________
A) loss in producers' surplus; gain in consumers' surplus
B) loss in consumers' surplus; loss in producers' surplus plus higher total revenues on the imported goods
C) loss in producers' surplus plus higher total revenues on the imported goods; consumers' surplus
D) tax; revenue
E) quota-determined price; quota-determined output
B
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Data on output and aggregate expenditure in Macroland are given below.Output(Y)Aggregate Expenditure1,0001,7502,0002,5003,0003,2504,0004,0005,0004,750Based on these data, the short-run equilibrium level of output is:
A. 5,000. B. 2,500. C. 4,000. D. 1,000.
If the government provides universal health insurance, what screening process will the government need?
A) It won't need a screening test. B) It will only give health insurance to non-smokers. C) It won't use screening tests but it will use statistical discrimination. D) It won't use screening tests but it will use signals.
The dominant firm in an oligopoly changes its prices, and then its competitors do likewise. This is an example of ______.
a. price leadership b. tying c. price discrimination d. merging