In the case of a small country, consumer surplus
A) decreases less with a tariff than with an equivalent quota.
B) decreases less with a quota than with an equivalent tariff.
C) decreases the same with tariffs and equivalent quotas.
D) increases more with quotas.
C
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What matters to people is the face value of money or income
Indicate whether the statement is true or false
Refer to Figure 19-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $4 per pound in the figure above, then which of the following is true?
A) The Bank of England would have to buy 0.7 million pounds per day with dollars. B) The par exchange rate is below the equilibrium rate, causing a shortage of domestic currency. C) There is a shortage of pounds equal to 0.7 million. D) The Bank of England would have to sell 0.7 million pounds per day in exchange for dollars.
A monopoly firm
A. has a short-run supply curve that slopes upward. B. is a price taker. C. does not have a supply curve. D. is at the mercy of the market-determined price.
Suppose the MPC is 0.8 in Canada and the MPC of Home goods is 0.55. If income increases by $100 million in Canada, then the increase in consumption of domestic goods will be:
a. $25 million. b. $80 million. c. $55 million. d. $35 million.