An import quota will raise the local price of a good, which will _____ consumer surplus and_____ producer surplus
a. decrease; increase
b. increase; increase
c. decrease; have no effect on
d. have no effect on; increase
c
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Assume a market is producing efficiently. Which type of government intervention in this market might create a deadweight loss?
i. a price ceiling ii. a price floor iii. a price support A) i only B) i and ii C) iii only D) ii and iii E) i, ii, and iii
An increase in labor hours will lead to
A) a shift of the aggregate production function but no movement along it. B) a movement along the aggregate production function but no shift in it. C) both a movement along and a shift in the aggregate production function. D) neither a movement along nor a shift in the aggregate production function.
The relationship that says that the forward premium or discount is equal to the interest differential is
A) interest rate parity. B) purchasing power parity. C) the Fisher equation. D) the term structure of interest rates.
In Figure 10-7, output at which point represents short-run but not long-run equilibrium?
a. A only b. B only c. both A and B d. both B and C