The larger the U.S. imposed per unit import tariff on a good imported and that is also produced in the U.S
A) the smaller the U.S consumer surplus.
B) the larger the U.S. producer surplus.
C) government revenue may be larger or smaller.
D) All of the above.
D
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Suppose the government of New Country has fixed the value of its currency, the New Peso, at $1 per New Peso, but the market equilibrium value of the New Peso is $2 per New Peso. In order to maintain the official value of the New Peso the Central Bank of New Country must either ________ domestic interest rates, or ________the supply of international reserves by purchasing New Pesos
A. lower; decrease B. lower; increase C. raise; decrease D. raise; increase
National saving equals
A) household saving + business saving. B) household saving + business saving + government saving. C) household saving + business saving + net taxes - government expenditure. D) Both answers B and C are correct.
Consider the above figure. The curve shown is sometimes referred to as
A) the Laffer curve. B) the Ricardian curve. C) the Keynesian curve. D) the Phillips curve.
If a firm is forced to take external costs into account, it will
A) reduce production and charge a higher market price. B) increase production and charge a lower market price. C) reduce prices and hire more workers. D) reduce prices and hire fewer workers.