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 production effect of the tariff.
A. $14 million
B. $7.5 million
C. $2.5 million
D. $5 million
Answer: C
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Suppose a pickpocket steals your $20 bill and spends all of it on pizza and beer. What happens to GDP?
A) GDP increases by twenty dollars. B) GDP decreases by twenty dollars. C) Because the positive balances out the negative, GDP remains unchanged. D) GDP decreases because somebody has clearly been made worse off.
Insurance policies can be bought to cover unexpected costs due to which kind of risk?
A. Fire damage to your home B. Automobile theft C. Fighting a rare disease D. Individuals can buy insurance to cover all these risks.
Without money, no transaction can occur
a. True b. False Indicate whether the statement is true or false
If a natural monopoly is forced to follow a policy of average-cost pricing, the monopolist will:
A. earn economic profits less than zero. B. charge a higher price than if not regulated. C. charge the same price as if it were not regulated. D. increase output to an amount greater than what it would have produced if it were not regulated.