In general, who will benefit as the result of a tariff?
I. Domestic producers
II. Domestic consumers
III. The domestic government
A) I only
B) II only
C) both I and III
D) both II and III
E) All of the above are correct.
Answer: C
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Hong Kong has imports of $1,130 billion and exports of $1,255 billion. Hong Kong definitely has ________
A) negative net exports of $125 billion B) positive net exports of $125 billion C) a government budget surplus D) Both answers B and C are correct.
The figure above shows the demand and marginal revenue curves facing Sue's Surfboards, the sole renter of surfboards on Big Wave Island. If Sue is renting 25 surfboards an hour so that the marginal revenue is negative, then Sue's Surfboards
A) can increase its profit by increasing the number of rentals. B) must face an inelastic demand for surfboard rentals. C) must face a unit elastic demand for surfboard rentals. D) must face an elastic demand for surfboard rentals.
In a partnership, the owners of the business and the business are ________, and in a sole proprietorship, the owner of the business and the business are ________
A) not separate legal entities; also not separate legal entities B) separate legal entities; also separate legal entities C) not separate legal entities; separate legal entities D) separate legal entities; not separate legal entities
Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively
The current long-run equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. a. Derive the (linear) long-run demand and supply equations. b. Suppose the long-run supply curve you derived above consists of competitive supply plus the quantity of OPEC supply. If the long-run competitive supply (not including OPEC's production) is: QS = 7.78 + 0.29p, what must be OPEC?s level of production in this long-run equilibrium to maintain the price of $30?