Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S. consumption and U
S. production of sugar?
If the quota is removed, the price of sugar in the United States would fall, U.S. consumption of sugar would increase, and U.S. production of sugar would decrease.
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External benefits are the extra
A) benefits a consumer gets from consuming a good. B) costs a producer creates in producing a good. C) benefits that accrue to people other than the consumers. D) costs a producer bears for producing a polluting good. E) benefits a producer obtains for reducing production of a polluting good.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same. b. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency rises. c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises.
How is monopolistic competition similar to perfect competition?
a. Both have market power. b. Both have easy entry and exit. c. Both have few sellers. d. Both have differentiated products.
Across the United States, fire departments are fighting with private companies over the right to respond to medical emergencies. Each side will fight harder the:
A. more inelastic the demand. B. less inelastic the demand. C. more elastic the supply. D. more elastic the demand.