Refer to the below table. The price of the product being produced by this resource is:
A. $1
B. $2
C. $3
D. $4
C. $3
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One result of voters' rational ignorance is that
a. cyclical majorities are more common b. vote trading is common c. majority rules d. special interests often dominate legislation e. members of Congress go along with whatever their constituents want
Keynesians believe
A) in laissez-faire. B) that equilibrium may exist at less than full employment. C) in the use of fiscal policy to stabilize the economy. D) b and c E) all of the above
In the above figure, if the firm is in monopolistic competition, it will produce
A) 40 units. B) 60 units. C) between 61 and 99 units. D) 100 units.
Refer to Figure 9-9. Fenwick currently both produces and imports pistachios. The government of Fenwick decides to restrict international trade in pistachios by imposing a quota that allows imports of only 5 million pounds each year
Figure 9-9 shows the estimated demand and supply curves for pistachios in Fenwick and the results of imposing the quota. Answer questions a-j using the figure. a. If there is no quota what is the domestic price of pistachios and what is the quantity of pistachios demanded by consumers? b. If there is no quota how many pounds of pistachios would domestic producers supply and what quantity would be imported? c. If there is no quota what is the dollar value of consumer surplus? d. If there is no quota what is the dollar value of producer surplus received by producers in Fenwick? e. If there is no quota what is the revenue received by foreign producers who supply pistachios to Fenwick? f. With a quota in place what is the price that consumers of Fenwick must now pay and what is the quantity demanded? g. With a quota in place what is the dollar value of consumer surplus? Are consumers better off? h. With a quota in place what is the dollar value of producer surplus received by producers in Fenwick? Are domestic producers better off? i. Calculate the revenue to foreign producers who are granted permission to sell in Fenwick after the imposition of the quota. j. Calculate the deadweight loss as a result of the quota.