The figure below shows the U.S. market for imported wine. For simplicity, we consider export supply curves to be flat. Chilean wine is available for $480 per barrel and French wine is available for $420 per barrel.
Suppose the United States has a tariff of $80 per barrel on imported wine. Then, the United States joins a free-trade area with Chile. How many barrels of wine will the United States import after joining the free-trade area?
A. 15 million barrels
B. 10 million barrels
C. 22 million barrels
D. zero barrels
Answer: A
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In the short run, the point at which diminishing marginal returns to labor begin is the point at which the marginal cost curve
A) peaks. B) bottoms out. C) is upward sloping. D) is downward sloping.
If expected inflation falls but actual inflation remains the same, what happens to the unemployment rate? Defend your answer
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