Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. 
If the government provides a subsidy of $500 per ton, then consumer surplus will be ________ per day.
A. $4,000
B. $8,000
C. $9,000
D. $1,000
Answer: C
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As part of the "exchange rate effect of monetary policy," a lower money supply causes a __________ interest rate and thus __________ of the domestic currency
A) higher; appreciation B) higher; depreciation C) lower; appreciation D) lower; depreciation
In absolute terms and relative to other countries, what happened to U.S. growth rates in productivity as measured by output per paid hour in the late 1960s and 1970s?
(a) They increased. (b) They stayed the same. (c) They fell. (d) They fell early on and then increased past their previous levels.
If there are only three firms in an industry with 50 percent, 40 percent, and 10 percent of the market, respectively, the Herfindahl Index is
a. 40 b. 100 c. 200 d. 33 e. 4,200
If the real interest rate in the domestic loanable funds market increases,
What will be an ideal response?