What is the current average tariff on imported goods for the world?
a. equal to 2 percent
b. equal to 5 percent
c. less than 5 percent
d. greater than 5 percent
c. less than 5 percent
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Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFs. Then, Liz suggests that they specialize and trade. She would produces only smoothies and Joe would produce only salads
Then she would sell 10 smoothies to Joe at a price of 2.5 salads per smoothie. In this scenario, A) Liz gains 10 smoothies and 5 salads, and Joe gains 5 smoothies. B) Liz gains 5 smoothies, and Joe gains 10 smoothies. C) Liz gains 10 smoothies, and Joe loses 5 smoothies. D) Liz gains 5 smoothies and 5 salads, and Joe loses 5 salads. E) Neither of the individuals gains from trade.
If we import more than we export from the rest of the world we
A) must borrow an equal amount from the rest of the world. B) can lend an equal amount to the rest of the world. C) are running a trade surplus. D) are helping to finance investment in the rest of the world.
Figure 10-4
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Figure 10-4 shows the industry’s supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S3, the firm is
A. going to shut down. B. incurring losses. C. earning zero economic profits. D. earning economic profit greater than zero.
If Brenda's MPC is 0.8 at an income of $20,000 and her income increases to $40,000 at the same time everyone else's income doubled, according to Duesenberry's relative income hypothesis, her MPC will
a. fall to 0.4 b. rise to 0.9 c. rise to 1.0 d. remain at 0.8 e. double