In the importing country, the most likely effects of tariffs and/or import quotas is to _______ prices and ________ consumption of the protected goods.
A) raise; reduce
B) raise; raise
C) raise; not affect
D) reduce; reduce
Ans: A) raise; reduce
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If marginal costs are constant what will the average variable cost curve look like? What about the average total cost curve?
What will be an ideal response?
Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4 . Which of the following combinations of beers and bratwursts represents a point that would lie to the exterior of the consumer's budget constraint?
a. 160 beers and 200 bratwursts b. 40 beers and 50 bratwursts c. 80 beers and 100 bratwursts d. 160 beers and 0 bratwursts
Suppose there are both multiplier and crowding out effects but without any accelerator effects. An increase in government expenditures would
a. shift aggregate demand right by a larger amount than the increase in government expenditures. b. shift aggregate demand right by the same amount as the increase in government expenditures. c. shift aggregate demand right by a smaller amount than the increase in government expenditures. d. Any of the above outcomes are possible.
In perfect competition, when firms are maximizing profits and households are maximizing utility,
A. individual welfare is maximized, but social welfare is not. B. voluntary exchange can be used to make both firms and households better off. C. the outcome is inefficient. D. Pareto optimality has been obtained.