Suppose the corn-producing industry of the U.S. is a price taker in the world market and government puts a ban on imports. The corn industry also receives subsidy from the home government. Then
A) social welfare will increase if the ban on imports is removed.
B) everyone will be better off if both ban on imports and subsidy are removed.
C) social efficiency will be improved if both ban on imports and subsidy are removed.
D) the deadweight loss is reduced if subsidy is removed.
C
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Demand-pull inflation persists because of
A) continuing increases in government expenditures. B) continuing increases in the quantity of money. C) continuing increases in the real wage rate. D) continuing decreases in the money wage rate. E) continuing increases in aggregate supply.
If the equilibrium price of good X is $4 and a price ceiling is imposed at $5, the result will be a(n):
a. depletion of inventories. b. shortage. c. surplus. d. equilibrium.
Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Harry wants to avoid Sally at the coffee shop and is not happy when Sally ends up in the same shop he chooses. Sally would like to see Harry, and so she is not happy when Harry ends up in a different coffee shop. Harry StarbucksDunkin DonutsSally StarbucksH: ?1, S: 1H: 1, S: ?1 Dunkin DonutsH: 1, S: ?1H: ?1, S: 1Given this payoff:
A. both Harry and Sally have dominant strategies. B. Sally has a dominant strategy but Harry does not. C. Harry has a dominant strategy but Sally does not. D. neither Harry nor Sally has a dominant strategy.
If the explicit costs to a firm to produce a unit of output are $6 and the firm sells 200,000 units of output for $8 per unit, the accounting profit received by the producer is
A) $1.2 million. B) $850,000. C) $1.6 million. D) $400,000.