221.SupposeFranceimposesatariffonwineof3eurosperbottle.Ifgovernmentrevenuefromthetariffamountsto30millioneurosperyearandifthequantityofwinesuppliedbyFrenchwineproducers,withthetariff,is8millionbottlesperyear,thenwecanconcludethat a.thequantityofwinedemandedbyFrance,withthetariff,is18millionbottlesperyear. b.thequantityofwinedemandedbyFrance,withoutthetariff,wouldbe24millionbottlesperyear. c.theamountofthedeadweightlossis24millioneurosperyear. d.thetariffcausesFrenchbuyersofwinetopay2eurosmoreperbottlethantheywouldpaywithoutthetariff. 222.Foracountrythatisconsideringtheadoptionofeitheratarifforanimportquotaonaparticulargood,animportantdifferenceisthat a.animportquotahasnoeffectonconsumersurplus,whileatariffdecreasesconsumersurplus. b.animportquotahasnoeffectonproducersurplus,whileatariffdecreasesproducersurplus. c.atariffraisestotalsurplus,whileanimportquotadoesnot. d.atariffraisesrevenueforthatcountry’sgovernment,whileanimportquotadoesnot. 223.Foranycountrythatallowsfreetrade, a.domesticquantitydemandedisequaltodomesticquantitysuppliedattheworldprice. b.domesticquantitydemandedisgreaterthandomesticquantitysuppliedattheworldprice. c.bothproducersandconsumersinthatcountrygainwhendomesticproductsareexported,butbothgroupslosewhenforeignproductsareimported. d.thedomesticpriceisequaltotheworldprice. Figure9-19.Onthediagrambelow,QrepresentsthequantityoftextilesandPrepresentsthepriceoftextiles.   224.RefertoFigure9-19.Withfreetrade,thecountryforwhichthefigureisdrawnwill a.export30unitsoftextiles. b.export50unitsoftextiles. c.import30unitsoftextiles. d.import50unitsoftextiles. 225.RefertoFigure9-19.Withfreetrade,consumersurplusinthetextilemarketamountsto a.$210. b.$320. c.$405. d.$910. 226.Whenacountryabandonsano-tradepolicy,adoptsafree-tradepolicy,andbecomesanexporterofaparticulargood, a.consumersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood. b.consumersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood. c.consumersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood. d.consumersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood. 227.Whenacountryabandonsano-tradepolicy,adoptsafree-tradepolicy,andbecomesanexporterofaparticulargood, a.producersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood. b.producersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood. c.producersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood. d.producersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood. 228.Whenacountryabandonsano-tradepolicy,adoptsafree-tradepolicy,andbecomesanimporterofaparticulargood, a.consumersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood. b.consumersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood. c.consumersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood. d.consumersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood. 229.Whenacountryabandonsano-tradepolicy,adoptsafree-tradepolicy,andbecomesanimporterofaparticulargood, a.producersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood. b.producersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood. c.producersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood. d.producersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood. 230.Whenacountrythatexportedaparticulargoodabandonsafree-tradepolicyandadoptsano-tradepolicy, a.consumersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood. b.consumersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood. c.consumersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood. d.consumersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood.    

  54) When considering changes in tax policy, economists usually focus on A) the average tax rate. B) the marginal tax rate. C) people’s willingness to pay taxes. D) people’s ability to pay taxes.     55) The marginal tax rate is A) the amount of taxes paid as a percentage of income. B) the amount of per-capita taxes paid. C) the amount of taxes […]

  3.4   The Effect of Demand and Supply Shifts on Equilibrium   1) Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity.  What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels? A) D increases, S no change, P and Q increase B) S increases, D no […]

    49) Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase? A) an increase in the price of soybeans B) a decrease in the price of corn C) an increase in the demand for corn D) an increase in the price of soybean seeds   50) Which of the following would […]

  Multiple Choice Questions 1.An economy where private individuals who are guided by the invisible hand make decisions is known as a: A. market economy. B. centrally planned economy. C. socialist economy. D. barter economy. 2.The term market refers to: A. the physical location where buyers and sellers meet to exchange goods for money. B. the buyers and sellers who trade a particular good or service, not to a physical location. […]

    31.RUTF: a.is a treatment for dehydration. b.is a high-calorie edible paste. c.must be refrigerated for safety. d.is a federal food relief program.   32.Kwashiorkor and marasmus: a.require different treatment strategies. b.cause serious birth defects. c.are more common than chronic malnutrition. d.result from inadequate diets.   33.To reduce the amount of trash you generate you should: a.increase your purchase of recyclable items. b.reuse items […]

  11) The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change? A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change. 12) The above figures show the market for HD televisions. If cable […]

  11) The above figure shows the PPF for a country that produces computers and computer factories. The nation’s production possibilities frontier is PPF0 . At which of the following production points would the economy grow most rapidly? A) Point A B) Point B C) Point C D) It makes no difference among the three points because they are all production efficient. E) More information […]

    65.              Callisto began 2000 with 100,000 shares of $3 par common stock.  The firm declared a 3-for-1 stock split on March 1, 2010.  How will the stock split affect Callisto’s stockholders’ equity? A)increase B)decrease C)no effect D)unable to determine from the information given     66.              Starfury Corporation has 1,000,000, $1 par shares of common stock authorized.  A total of 400,000 shares have […]

  121) Refer to Figure 8-5.  The firm that is facing the isocost lines as shown will minimize its cost of production of any given output level if it employs capital and labour such that the ratio of the marginal product of labour to the marginal product of capital ( / ) is equal to A) 5/2. B) 5. C) 2. D) 2/5. E) Not […]