Refer to Figure 9.8. If free trade in sugar is replaced by a $50 tariff in sugar, consumer surplus will
A) fall by $50.
B) fall by $26,250.
C) fall by $22,500.
D) rise by $50.
E) rise by $17,500.
C
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The phrase "sticky prices" refers to the prices of:
A. some inputs taking longer to adjust to the price level than the output it creates. B. some output taking longer to adjust to the price level than the inputs used to create it. C. more durable goods "sticking," and not adjusting to the price level. D. consumer goods not adjusting to the price level.
Refer to Figure 14.2. A movement from point a to point b could be caused by a(n):
A. increase in government spending. B. decrease in the price of oil. C. decrease in taxes. D. decrease in short-run aggregate supply.
"Certified shade-grown, organic coffee" is an example of requiring home standards in a foreign market instead of trade barriers
Indicate whether the statement is true or false
If X is a normal good, an increase in income will shift the
A. demand curve for X to the left. B. supply curve for X to the left. C. supply curve for X to the right. D. demand curve for X to the right.