When the market is in equilibrium, with no government intervention,
a. Total surplus is minimized
b. Total surplus is maximized
c. Government maximizes total revenue
d. None of the above
b
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. The size of the import quota
A. is y?w. B. is y?v. C. is z?v. D. cannot be determined.
Most of world trade is in the form of manufactured consumer goods such as TVs, stereos, VCRs, and running shoes
Indicate whether the statement is true or false
With modern sector enlargement growth, inequality will
a. first rise and then fall. b. first fall and then rise. c. remain about the same. d. All of the above.
The cyclical deficit is $400 billion, potential output is $9 trillion and the tax rate is 16 percent. With this information, we can infer that the actual output of this economy is:
A. $9 trillion. B. $6 trillion. C. $11.5 trillion. D. $6.5 trillion.