The figure below represents the domestic market for wheat in a small country. Imports of wheat are prohibited.
With an export subsidy of $20 per bushel, the net loss in national well-being as a result of the export subsidy is
A. $500 million.
B. $200 million.
C. $2.2 billion.
D. $300 million.
Answer: A
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Technically speaking, in what year did the “Great Recession” end?
A. 1933 B. 1935 C. 2007 D. 2009 E. It had not ended as of 2011.
Profit maximization requires that
A) the marginal factor cost of every input equals that input's marginal physical product. B) the marginal factor cost of every input equals that input's marginal revenue product. C) the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input. D) equal amounts of each input are employed.
If hot dogs cost $2 this year and $3 next year, then 100 hotdogs will contribute
a. $200 to this year's nominal GDP and $166 to next year's nominal GDP. b. $200 to this year's real GDP and $300 to next year's real GDP. c. the same dollar amount to each year's nominal GDP because hotdogs are intermediate goods. d. $200 to this year's nominal GDP and $300 to next year's nominal GDP.
Which of the following would cause the aggregate demand curve to decrease, ceteris paribus?
a) An increase in income taxes. b) An increase in the value of the stock market. c) Strong performance of foreign economies. d) A decrease in interest rates.