Refer to Figure 9-3. What is the value of the deadweight loss as a result of the quota?
A) $5.25 million B) $8 million C) $17.25 million D) $20 million
A
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If a sandwich shop produces zero sandwiches, which of the following costs will it still incur?
A. Rented storefront B. Sandwich ingredients C. Employee's wages D. None of these costs will be incurred if they no longer make sandwiches.
The nominal interest rate is 6 percent and the real interest rate is 2.5 percent. What is the inflation rate?
a. 2.4 percent. b. 3.5 percent. c. 8.5 percent. d. 15 percent.
Forest lives in complete isolation in Montana. He is self-sufficient and feeds himself through hunting, fishing, and farming. Which of the following statements about Forest is true?
A. Forest has to make trade-offs. B. Forest has unlimited resources. C. Forest doesn't have to consider costs and benefits. D. Forest is not required to make trade-offs because he is self-sufficient.
Macroeconomics is best defined by which of the following statements?
A. Macroeconomics is the study of how the prices of individual goods are determined. B. Macroeconomics is the study of the behavior of the economy as a whole. C. Macroeconomics is the study of individual households. D. Macroeconomics is the study of how firms attempt to maximize profits.