Which one of the following statements about tariffs and quotas is correct?
A. Only the tariff produces revenues for the government.
B. Only the quota will cause domestic production to increase.
C. Only the quota will cause domestic prices paid by consumers to increase.
D. Only the quota will cause the quantity of imports to decrease.
A. Only the tariff produces revenues for the government.
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A perfect price discriminating equilibrium maximizes
A) consumer surplus. B) the associated deadweight loss. C) the market inefficiency. D) total welfare.
Refer to Figure 6.3. If the market is in equilibrium, the total surplus is:
A. area ABC. B. area BCD. C. zero. D. area ACD.
Net investment is
A. GNP minus final sales. B. gross investment minus depreciation. C. gross investment plus depreciation. D. depreciation minus gross investment.
Consider the graph. What would most likely be the cause of a shift from D1 to D2?
A. A tax on buyers B. A subsidy for buyers C. A tax on sellers D. A subsidy for sellers