Refer to Figure 7-2. The loss in domestic consumer surplus as a result of the tariff is equal to
A) $5 million. B) $19.875 million. C) $24.875 million. D) $31.125 million.
D
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The terms of trade can take on any value
A. below the seller's opportunity cost and above the buyer's opportunity cost. B. above the seller's opportunity cost. C. below the seller's opportunity cost and below the buyer's opportunity cost. D. above the seller's opportunity cost and below the buyer's opportunity cost.
What is crowding out?
a. when government borrowing uses up financial capital leaving more for private investors b. when government borrowing leaves more financial capital for private investors c. when government borrowing uses up financial capital leaving less for private investors d. when government borrowing leaves less financial capital and private investors borrow more
If marginal cost exceeds marginal revenue,
a. the firm can increase profits by increasing output b. the firm will lower profits by increasing output c. the firm is maximizing profits d. total cost exceeds total revenue e. average cost equals average revenue
Data from the registrar's office at Gigantic State University indicate that over the past 20 years tuition and enrollment have both increased. From this information we can conclude that:
A. GSU's supply curve of education is downsloping. B. the supply of education provided by GSU has also increased over the 20-year period. C. school-age population, incomes, and preferences for education have changed over the 20-year period. D. higher education is an exception to the law of demand.