In a large country case, an optimal tariff is one for which the terms-of-trade gain exceeds the:
a. producer surplus.
b. increased price of the product imported.
c. deadweight loss.
d. consumer surplus.
Ans: c. deadweight loss.
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The law of supply indicates that an increase in price will cause an increase in supply which is reflected graphically as a rightward shift of the supply curve
a. True b. False Indicate whether the statement is true or false
For a monopolist, marginal revenue is:
a. less than price. b. equal to price. c. greater than price. d. greater than average revenue.
When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in capital________________________, and a rise in the technology coefficient __________________
A) shifts the production function upward; also shifts the production function upward B) shifts the production function downward; shifts the production function upward C) moves us up along a given production function; shifts the production function upward D) shifts the production function upward; moves us up along a given production function
In a closed economy with output fixed, an increase in government spending matched by an equal increase in taxes will:
A. increase consumption. B. increase the interest rate. C. increase investment. D. leave all other variables unchanged.