Consider a market in which there is an import tariff. Which of the following is TRUE?
A) The lost consumer surplus equals the gain in producer surplus plus the government revenue plus the deadweight loss.
B) The lost consumer surplus equals the gain in producer surplus.
C) The lost consumer surplus equals the gain in producer surplus plus the government revenue.
D) The lost consumer surplus plus the deadweight loss equal the gain in producer surplus plus the government revenue.
A
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The current account includes records of a country's
A) net transfers. B) net investment income. C) net exports. D) All of the above are included in an economy's current account.
Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156 . The price of iron ore increased by
a. less than inflation, so it became less scarce. b. less than inflation, so it became more scarce. c. more than inflation, so it became more scarce. d. more than inflation, so it became less scarce.