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, the amount of surplus enjoyed by domestic consumers with free trade before the tariff is area:
A. ABCDEFGHIJKL
B. ABCDEFG
C. ABC
D. A
Answer: A
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Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?
What will be an ideal response?
A subsidy to firms intended to reduce pollution in an industry would
A. shift the LRAC curve upward. B. have the same impact on the firm as a tax. C. likely drive some existing firms from the industry. D. likely have the paradoxical effect of increasing pollution in the industry in the long run.
When a firm cheats in a cartel, it assumes that: a. other firms will also change their output. b. other firms will not change their output. c. the price of the good will not change
d. the price of the good will change.
If the labor pool effect of globalization is equal in strength to the market expansion effect, then globalization will lead to __________ in wages and __________ in the number of workers hired.
A. a decrease; no change B. no change; an increase C. an increase; no change D. no change; a decrease