Which variable is assumed to remain exogenous in all the models constructed in Chapters 3 and 4?

With a home monopolist, the imposition of a tariff results in:

a. a higher deadweight loss than a quota. b. a higher price for consumers than a quota. c. a lower deadweight loss than a quota. d. the same welfare effects as a quota.

If there is a 5 percent increase in the CPI, then there will most likely be

A) a more than 5 percent rise in the cost of living because of the introduction of new goods. B) a 5 percent rise in the cost of living. C) a less than 5 percent rise in the cost of living because of consumers substituting away from goods whose relative prices rise towards other goods. D) a more than 5 percent rise in the cost of living because of consumers substituting away from goods whose relative prices rise towards other goods. E) a less than 5 percent rise in the cost of living because of falling quality of goods over time.