A graphical analysis of tariffs reveals that
A. they benefit domestic consumers at the expense of domestic producers.
B. their revenue gains outweigh the costs to domestic consumers.
C. although the benefits are not shared equally, everyone in the domestic economy benefits from tariffs.
D. they increase domestic production of the good for which imports face tariffs.
Answer: D
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Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?
What will be an ideal response?
The government's profit from issuing fiat money is known as
A) seigniorage. B) menu costs. C) commodity profit. D) tax distortions.
A firm will shut down in the short run when
A) price is below average total costs at all possible rates of output. B) price is below average variable costs at all possible rates of output. C) price is below marginal cost at all possible rates of output. D) it is making a loss.
One of the three Key Steps of economic analysis is
a. describing the conditions necessary for equilibrium and a method for determining that equilibrium b. determining who are the suppliers and a method for counting the number of suppliers c. determining who are the demanders and a method for counting the number of demanders d. pairing up each demander with a particular supplier e. pairing up each suppliers with a particular demander