The figure above shows the market for a good with an external benefit. If the government wants to grant a subsidy so that the efficient quantity is produced, the subsidy must equal ________ per unit
A) $100
B) $150
C) $250
D) $300
E) $50
B
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The Federal Trade Commission is charged with
a. supervising cartels in the United States b. aiding small business in contract negotiations with foreign companies c. investigating unfair and deceptive trade practices d. approving contracts between businesses and government e. bringing criminal complaints
If Boliva's terms of trade changes from 1.00 to 1.20, it implies that
a. Bolivia is exporting more than it's importing b. Bolivia is importing more than it's exporting c. Bolivia's export prices have risen relative to its import prices d. Bolivia has lost the comparative advantage in the production of goods e. Bolivia now has an absolute advantage in the production of goods
Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government
a. True b. False Indicate whether the statement is true or false
What happens to bring the AD–AS system back into equilibrium when prices are below the equilibrium level? Above the equilibrium level?
What will be an ideal response?