When the government imposes a tariff on imported goods, it _____________ prices for domestic consumers, ________________ consumers' surplus and _________________ the producers' surplus for domestic producers.
A. raises; lowers; raises
B. lowers; raises; raises
C. lowers; raises; lowers
D. raises; lowers; lowers
E. none of the above
Answer: A
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Rich countries (measured by GDP per capita) tend to have __________ infant mortality rates, __________ life expectancies at birth, and __________ adult literacy rates than poor countries
a. higher; higher; higher b. lower; higher; higher c. lower; lower; higher d. lower; lower; lower e. lower; higher; lower
Society benefits from monopolistic competition because the firms are allocatively efficient
a. True b. False Indicate whether the statement is true or false
If profit per unit equals (price - cost per unit) and costs are temporarily fixed, then the aggregate supply curve will have
a. a basic "U" shape. b. a negative slope. c. a positive slope. d. All of the above could be correct.
At the height of the 2008 financial crisis, in the time it took a completely full oil tanker to travel from Saudi Arabia to the United States, the price of oil fell nearly $50 per barrel. According to the expected price formulation, that could happen because