The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent. The "Buy American" provision would ________
consumer surplus and ________ producer surplus for industries that produced protected products in the United States.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Answer: C
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A person should consume more of something when its marginal
A. cost exceeds its marginal benefit. B. benefit is positive. C. benefit exceeds its marginal cost. D. cost equals its net marginal benefit.
Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels
Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.) A) 1 B) 0.47 C) 2.14 D) 0.29
The more elastic is the demand for a product:
A. the greater the difference between marginal revenue and price. B. the closer is marginal revenue to the price. C. the more a firm must reduce its price to increase its sales. D. the less a firm must increase its sales to reduce the price.
In the aggregate demand–aggregate supply model, which of these changes is most likely when the cost of production increases in the long run? a. A leftward shift of the short-run aggregate supply curve b. A leftward shift of the short-run aggregate demand curve c. A rightward shift of the short-run aggregate supply curve d. An increase in the potential output level increases
e. A decrease in the actual price level decreases.