Refer to the information provided in Figure 20.5 below to answer the question(s) that follow.
Figure 20.5Refer to Figure 20.5. The domestic price of oil is $130 per barrel, and the world price of oil is $120 per barrel. If the domestic government imposes a tariff of $________ per barrel, it will eliminate all oil imports and achieve tariff revenues of $________.
A. 5; 45 million
B. 5; 20 million
C. 10; zero
D. 10; 120 million
Answer: C
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A. demand curve for fish shifted to the right. B. demand curve for fish shifted to the left. C. demand for meat decreased. D. price of fish increased.
Society can produce at a point outside the production possibilities frontier, but only if it is using all of its resources efficiently
a. True b. False Indicate whether the statement is true or false
Suppose over some period of time the money supply tripled, velocity was unchanged, and real GDP doubled. According to the quantity equation the price level is now
a. 6 times its old value. b. 3 times its old value. c. 1.5 times its old value. d. 0.75 times its old value
An increase in the money supply will
A. decrease aggregate supply. B. increase aggregate supply. C. increase aggregate demand. D. decrease aggregate demand.