When a country moves away from a free trade position and imposes a tariff on imports, it causes
a. a decrease in total surplus in the market.
b. a decrease in producer surplus in the market.
c. an increase in consumer surplus in the market.
d. a decrease in revenue to the government.
a
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All of the following will cause the reported growth rate in a country to change EXCEPT
A) changes in productivity. B) population changes. C) a shift of the production possibilities curve. D) changes in the number of poor people in the country.
Economic theory looks at social coordination as a process of
A) continuing mutual adjustments to the situations created by the actions of others. B) continuous adjustment of extremes to conform to the average. C) passing information up from below and instructions or commands down from above. D) sacrificing personal interest to the public or general interest. E) sacrificing the public interest to self-interest.
If production technologies are homothetic, all cost-minimizing production plans lie on the same ray from the origin for a given set of input prices.
Answer the following statement true (T) or false (F)
What is the difference between positive and normative economics? How can knowledge of positive economics be useful in normative economics?