Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.
Figure 4.4Refer to Figure 4.4. If a $25 per barrel tariff is levied on imported oil, the United States will
A. import 10 million barrels of oil per day.
B. import 2 million barrels of oil per day.
C. import 6 million barrels of oil per day.
D. export 10 million barrels of oil per day.
Answer: B
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Consider the following simplified sequence of exchanges. A farmer sells wheat to a miller, for 25 cents. The miller grinds the wheat into flour, and sells that to a baker, for 35 cents
The baker turns the flour into a loaf of bread, which she sells to a grocer for 60 cents. The grocer then sells you the loaf of bread for 85 cents. What can we conclude? A) Your purchase of the bread avoided the use of a middleman. B) The grocer's profit means you lost on the deal. C) GDP increases by 25 cents. D) GDP increases by 85 cents. E) GDP increases by $2.05.
In the above figure, if output were restricted to 300 million pounds of turkey, then
A) the marginal social benefit would exceed the marginal social cost on the last pound of turkey traded by $0.80. B) there would be a deadweight loss of $40 million. C) there would be inefficient underproduction of turkey. D) All of the above answers are correct.
Why does the Fed have to be concerned with money growth even though their main focus seems to be on interest rates?
What will be an ideal response?
Macroeconomists focus on just a few key statistics when trying to understand the health and trajectory of an economy because
What will be an ideal response?