Figure 17-12
If the country illustrated in is initially trading without restrictions at a world price of $1.00, the loss of consumer surplus as a result of a tariff of $0.50 per unit is represented by area
a.
a
b.
b + d
c.
c + i + e + f
d.
c
e.
d
c
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Industry X, which is perfectly competitive, is in long-run equilibrium. Assume a new law is passed that requires employers in industry X to provide health insurance to previously uninsured employees
As a result of this new requirement we would expect to observe: A) a decrease in price and an increase in total output in industry X. B) a decrease in price and total output in industry X. C) an increase in price and a decrease in total output in industry X. D) an increase in price and total output in industry X.
If the price of a Swiss franc is $0.60, the price of a dollar is __________ Swiss francs
A) 0.40 B) 1.40 C) 1.67 D) 6.0
The shape of the marginal cost curve reflects the
A. Law of diminishing marginal utility. B. Competitiveness of the firm. C. Law of demand. D. Law of diminishing returns.
A person who is willing to bear more risk will buy
A. common stock. B. government bonds. C. preferred stock. D. bonds.