A ban on imports, a tariff, or a quota raise the price to domestic consumers creates a deadweight loss. This loss is composed of
A) production associated loss and inefficiency loss.
B) productive consumption loss and protection loss.
C) consumption distortion loss and production distortion loss.
D) consumer misperception loss and taxation loss.
C
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Explain the three different types of money demand
What will be an ideal response?
If one U.S. dollar could be exchanged for one Australian dollar in 1970, and one U.S. dollar can now be exchanged for 0.98 Australian dollars, which of the following is true?
A) The U.S. dollar gained value against the Australian dollar. B) The Australian dollar lost value against the U.S. dollar. C) The Australian dollar gained value against the U.S. dollar. D) Both A and C are true.
Refer to Table 15.1. The budget deficit for Arugula in 2012 is
A) $135 million. B) $195 million. C) $380 million. D) $600 million.
Big Waves is a large water park. Suppose the individual demand for entrance into Big Waves is Qd = 50 - (2 × P) and each consumer has the same demand. Big Waves has a constant marginal cost of $5 per consumer. If Big Waves practices two-part pricing and requires a membership fee and then a separate entrance fee, what is the profit-maximizing membership fee?
A) $400 B) $200 C) $50 D) $125