The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of
A) 10 units.
B) 20 units.
C) 30 units.
D) 40 units.
A
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If a curve rises and then falls, it shows a
A) maximum. B) minimum. C) linear relationship. D) constant slope relationship.
In the Keynesian aggregate expenditure graph (Figure 5-5), the 45 degree line is meant to indicate that:
a. planned aggregate expenditure always equals aggregate income. b. savings must equal investment. c. actual aggregate expenditure must equal aggregate income. d. actual income must equal planned income. e. none of the above.
Tasha is undecided about whether to sell her house or not. If the real estate agent comes to her with a $150,000 offer, she will not sell. If the offer is $175,000 . she will sell. Think of Tasha as one of hundreds of would-be sellers on the housing market. It illustrates that
a. the demand for real estate is unreliable b. Tasha's decision making reflects a market-day supply c. there must be an excess supply of homes d. the supply curve for homes is upward sloping e. the supply curve for homes is downward sloping
Under what circumstances would you expect economic profits to be zero in a particular industry?
A. During a recession B. When there is little competition in the industry C. When the industry is neither expanding nor contracting D. When the demand for the product being produced is increasing