If increasing the admission charge for National Parks increases the National Park Service's total revenue, then the demand for National Park visits is:
A. inelastic.
B. elastic.
C. perfectly elastic.
D. a perfectly horizontal line.
A. inelastic.
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Refer to Figure 9-9. Fenwick currently both produces and imports pistachios. The government of Fenwick decides to restrict international trade in pistachios by imposing a quota that allows imports of only 5 million pounds each year
Figure 9-9 shows the estimated demand and supply curves for pistachios in Fenwick and the results of imposing the quota. Answer questions a-j using the figure. a. If there is no quota what is the domestic price of pistachios and what is the quantity of pistachios demanded by consumers? b. If there is no quota how many pounds of pistachios would domestic producers supply and what quantity would be imported? c. If there is no quota what is the dollar value of consumer surplus? d. If there is no quota what is the dollar value of producer surplus received by producers in Fenwick? e. If there is no quota what is the revenue received by foreign producers who supply pistachios to Fenwick? f. With a quota in place what is the price that consumers of Fenwick must now pay and what is the quantity demanded? g. With a quota in place what is the dollar value of consumer surplus? Are consumers better off? h. With a quota in place what is the dollar value of producer surplus received by producers in Fenwick? Are domestic producers better off? i. Calculate the revenue to foreign producers who are granted permission to sell in Fenwick after the imposition of the quota. j. Calculate the deadweight loss as a result of the quota.
When the government increased spending during the 1930s in an attempt to create jobs and end the Great Depression, it provided an example of expansionary
(a) fiscal policy. (b) monetary policy. (c) regulatory policy. (d) welfare policy.
The point elasticity is a measure of the sensitivity of consumers to a large price change - a range from one price to another
a. True b. False Indicate whether the statement is true or false
Economic efficiency is achieved
a. automatically in a capitalist economy b. when every possible Pareto improvement is exploited c. when all markets are monopolized d. if income is fairly distributed e. whenever a voluntary transaction takes place