In a small country, the net national cost of tariff protection is equal to the reduction in consumer surplus minus
A) the gain to foreigners.
B) the increase in government revenue and the increase in producer surplus.
C) the increase in government revenue.
D) the increase in producer surplus.
E) the efficiency loss and the consumption side loss.
B
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The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the equilibrium price is ________ per ton
A) $60 B) $70 C) $80 D) $90
Using Figure 9.1, explain what a firm would do in the short run if the market price of its product were at P3 and it produced Q3 . Is the firm earning an economic profit? Explain
What will be an ideal response?
The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to
a. decrease, raising wages in industries that are not unionized. b. decrease, reducing wages in industries that are not unionized. c. increase, raising wages in industries that are not unionized. d. increase, reducing wages in industries that are not unionized.
The major trade group in South America involving Brazil, Paraguay, Uruguay, and Argentina is ________.
A) Mercosur B) UNASUR C) APEC D) CAN