Refer to the figure above. What is the deadweight loss of the tariff imposed by the government?
A) $10
B) $20
C) $30
D) $40
A
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During the German hyperinflation of the 1920s, the large increases in the money supply were generated by the German government
A) significantly raising the required reserve ratio to reduce business loans. B) significantly lowering the required reserve ratio to enable German businesses to obtain loans. C) selling large quantities of government bonds to the central bank, the Reichsbank. D) printing large quantities of German marks.
Smith just bought a house for $250,000. Earthquake insurance, which would pay $250,000 in the event of a major earthquake, is available for $25,000
Smith estimates that the probability of a major earthquake in the coming year is 10 percent, and that in the event of such a quake, the property would be worth nothing. The utility (U) that Smith gets from income (I) is given as follows: U(I) = I0.5. Should Smith buy the insurance? A) Yes. B) No. C) Smith is indifferent. D) We need more information on Smith's attitude toward risk.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
Figure 18.3Refer to Figure 18.3. In autarky, the maximum amount of pogo sticks that Livonia can produce is:
A. 120. B. 100. C. 80. D. 40.