The figure below shows the national market for mopeds in a country. Dd and Sd are the domestic demand and supply curves of mopeds, respectively.
Calculate the welfare loss arising from the consumption effect of the tariff.
A. $14 million
B. $5 million
C. $2.5 million
D. $7.5 million
Answer: B
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"Granger laws" were early efforts by states to regulate the railroads and were
a. were severely limited in scope through litigation, b. generally outlawed both place and person discrimination, c. established commissions with the power to investigate complaints d. All of the above
Which of the following types of workers might have wages that change quickly?
A) union workers B) movie stars and rock stars C) unskilled, low-wage workers D) employees of state and local governments
When demand for a firm's product decreases, the firm can take a number of steps to adjust costs and quantities supplied to the market. Some are listed below. Which actions are short run and which are long run? Explain your reasoning
a. Layoff 25 percent of the firm's existing employees. b. Declare bankruptcy and sell all of the firm's plant and equipment. c. Require management personnel to take a significant cut in pay. d. Furlough employees for 3 days each month. e. Move to a smaller production facility.
What are the effects of a tariff, and who benefits and who loses when tariffs are imposed? What are the effects of a quota, and who benefits and who loses when quotas are imposed?