Refer to the figure above. The deadweight cost of the tariff equals
A) $10,000.
B) $25,000.
C) $50,000.
D) cannot be calculated without further information.
B
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On any given day, ________ changes to achieve equilibrium in the money market
A) the nominal interest rate B) the price level C) the real interest rate D) the inflation rate E) real GDP
Average tariff levels in the United States in the last decade are
A) about equal to the average since 1930. B) above the average since 1930. C) positive, but below the average since 1930. D) zero, as there are no longer any tariffs in the United States.
Which of the following is not true regarding "exchange rate indexes?"
A) They will all show the same general trends (i.e., appreciation or depreciation). B) Neither economic theory nor practice gives a clear indication of which exchange rate is best. C) For short-term movements, there can be large differences across exchange rate indexes. D) Exchange rate indexes are used to measure the average value of a currency relative to several other currencies.
According to the median voter theorem, majority rule will
a. always produce an inconclusive outcome. b. produce the outcome least preferred by the median voter. c. produce the outcome most preferred by the median voter. d. produce an outcome that is inconsistent with transitive preferences.