Restrictions on the importation of tomatoes reduce the supply available to the U.S. domestic market. Studies indicate that the demand for tomatoes is elastic. Compared to a free-trade situation, the import restrictions cause
a. higher tomato prices and an increase in consumer expenditures on tomatoes in the United States.
b. lower tomato prices and an increase in consumer expenditure on tomatoes in the United States.
c. lower tomato prices and a reduction in consumer expenditure on tomatoes in the United States.
d. higher tomato prices and a reduction in consumer expenditure on tomatoes in the United States.
d
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Suppose Alcoa Inc is a monopsonist employer. Using the concept of marginal factor cost, each time Alcoa increases the number of workers it hires, it will:
The government of Lithasia ran a budget deficit of $60,000 in 2014. If the tax revenue of the Lithasian government in 2014 was $320,000,000, how much did the government spend in that year?
A) $319,940,000 B) $1,060,000 C) $320,060,000 D) $49,000,000
Inflationary pressures caused the FOMC to increase the federal funds rate by ΒΌ of a percentage point in June 2004, and by exactly the same amount at every subsequent FOMC meeting through June of 2006. Theses actions
A) caused an upward movement along the monetary policy curve. B) caused a downward movement along the monetary policy curve. C) shifted the monetary policy curve upward. D) shifted the monetary policy curve downward.
Macroeconomics is concerned with studying the
A. prices of specific companies' stocks. B. wants of individual consumers. C. behavior of individual decision makers. D. performance of the economy as a whole.