Which of the following is true concerning the impact of tariffs and quotas?
a. Tariffs raise the price of a good but quotas do not.
b. Tariffs reduce consumer and producer surplus whereas quotas reduce domestic consumer surplus and increase domestic producer surplus.
c. Both tariffs and quotas increase the quantity demanded.
d. The revenue resulting from a tariff goes to the government whereas the revenue resulting from a quota goes to whoever is awarded the right to sell the product.
e. The potential welfare loss is greater with tariffs than quotas.
D
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Refer to the above table. What does total product equal when 4 units of labor are used?
A) 1328 B) 332 C) 320 D) 960.
Exit of a firm refers to:
A) a short-run decision by a firm to not produce anything. B) a long-run decision by a firm to leave the market. C) a refusal to work organized by a group of employees at the firm. D) an exclusion of employees of a firm from their place of work until certain terms are agreed upon by them.
The average number of times each dollar is used per year to buy goods and services in the economy is called the
A. velocity of circulation. B. equation of exchange. C. law of demand. D. law of diminishing returns.
If the price of train rides is 1 and the price of food is 10, and the MRS of food for train rides expressed by Karl is 5, is Karl a utility maximizer? How do you know? If Karl is not maximizing, what should he do to improve his situation?
What will be an ideal response?