Figure 17-12
If the country illustrated in is initially trading without restrictions at a world price of $1.00, the government revenue from a tariff of $0.50 per unit is represented by area
a.
c
b.
e + g
c.
i + e + f
d.
d + e
e.
e
e
You might also like to view...
Why did India's economic growth rate lag far behind growth rates in South Korea, Japan, and Taiwan between 1960 and 1999?
A) Indian households saved too much and spent too little. B) Indian government officials opened the nation up to free international trade. C) India engaged in central economic planning. D) India has too small of a population to generate a highly specialized division of labor.
For each of the following changes, what happens to the real interest rate and output in the long run, after the price level has adjusted to restore general equilibrium? How would the results differ, if at all, between the classical and Keynesian
model? Draw a diagram for each part to illustrate your result. (a) Wealth rises. (b) Money supply rises. (c) The future marginal productivity of capital increases. (d) Expected inflation declines. (e) Future income declines.
When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called
A) qualitative easing. B) quantitative easing. C) qualitative tightening. D) quantitative tightening.
In which of the following groups are ALL of the elements considered barriers to entry to an oligopolistic market?
a. economies of scale; perfect competition; high start-up costs b. high levels of competition; high advertising costs; legal concerns c. high number of competitors; low start-up costs; legal concerns d. economies of scale; high start-up costs; legal concerns