The figure below shows the market for shoes in a small importing country. Dd and Sd are the domestic demand and supply curves of shoes, respectively.
The consumption effect of the tariff on shoes is measured by the area
A. b.
B. c.
C. (a + b + c + d).
D. d.
Answer: D
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Government may actually establish temporary monopolies by the issuance of patents and copyrights.
Answer the following statement true (T) or false (F)
The real balance effect works through a change in the value of
A) monetary assets in response to changes in the unemployment rate. B) nonmonetary assets in response to changes in the unemployment rate. C) monetary assets in response to changes in the price level. D) nonmonetary assets in response to changes in the price level.
A flat marginal cost curve prior to capacity being reached suggests that the marginal cost of providing entrance to the 100th person is
A. greater than that of the 1000th person. B. less than that of the 1000th person. C. unrelated to the marginal cost of the 1000th person. D. the same as that of the 1000th person.
One requirement for an effective nominal anchor is ________
A) price stability B) credibility C) fixed exchange rates D) rational expectations