If the import supply curve is upward-sloping:
A. a tariff or quota can increase domestic aggregate surplus.
B. a quota can increase domestic aggregate surplus, but a tariff cannot.
C. a tariff can increase domestic aggregate surplus, but a quota cannot.
D. neither a tariff nor a quota can increase domestic aggregate surplus.
A. a tariff or quota can increase domestic aggregate surplus.
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In an indifference curve/budget line diagram, generally when the price of a good increases, the consumer purchases ________ of the good and moves to a ________ indifference curve
A) less; lower B) less; higher C) more; lower D) more; higher
A tax on productive activity tends to
a. increase formal market activity because it decreases prices b. decrease formal market activity because it increases work incentives c. decrease formal market activity because it lowers the return on such activity d. decrease activity in the underground economy because people are afraid of being connected with tax fraud e. increase activity in the underground economy because people are afraid of being connected with tax fraud
A recessionary gap exists when potential GDP
a. falls short of equilibrium GDP. b. exceeds equilibrium GDP. c. equals equilibrium GDP. d. All of the above are correct.
If a rise in the price of good B increases the quantity demanded of good A
A) A and B are substitutes. B) A and B are complements. C) A is a substitute for B, but B is a complement to A. D) B is a substitute for A, but A is a complement to B.