Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.
Figure 4.4Refer to Figure 4.4. Assume that initially there is free trade. Tariff revenue of $50 million per day will be generated if the United States imposes a ________ tariff per barrel on imported oil.
A. $25
B. $50
C. $100
D. $150
Answer: A
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Which of the following is TRUE?
A) For an inferior good, when income increases, the demand curve shifts leftward. B) The demand curve for a good shifts leftward when the price of a substitute rises. C) If consumers expect the price of a good will rise in the future, the demand curve shifts leftward. D) An increase in population shifts the demand curve for most goods leftward.
Which of the following is NOT an alleged "unrealistic" assumption that proponents of behavioral economics suggest are commonly utilized in traditional economic models based on the rationality assumption?
A) unbounded selfishness B) unbounded rationality C) unbounded will power D) unbounded resources
Which of the following is not an example of economic regulation?
a. Preventing a firm from starting up in a town. b. Maintaining a minimum price for a good. c. Restricting the use of hazardous materials without proper protection. d. Requiring a minimum amount of goods produced in a given year.
Answer the following statement(s) true (T) or false (F)
1. In a perfect competition, profits continue indefinitely. 2. Patents allow firms to price their products below marginal costs. 3. The equilibrium price is the same whether a firm has a monopoly or is engaged in perfect competition. 4. Monopolists stop producing when price exceeds marginal cost. 5. Monopoly profits are inefficient.