The figure below illustrates the impact of an export subsidy as imposed by a large country. No imports are permitted.
The cost to the government of the indicated export subsidy is shown by area(s)
A. (a + b + c + d + e + f + g + h + i + j)
B. (c + h)
C. (b + c + d + f + g + h + i + j)
D. (b + c + d)
Answer: C
Economics
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If the price of inputs falls and the government deficit rises:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Neither aggregate demand nor aggregate supply change. d. None of the above.
Economics
Which of the Ten Principles of Economics does welfare economics explain more fully?
a. The cost of something is what you give up to get it. b. Rational people think at the margin. c. Markets are usually a good way to organize economic activity. d. People respond to incentives.
Economics