The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent. In the U.S. steel market, the "Buy American"
provision in the 2009 stimulus package would
A) convert some consumer surplus to deadweight loss.
B) transfer some deadweight loss to producer surplus.
C) transfer some producer surplus to consumer surplus.
D) reduce the producer surplus received by foreign manufacturers.
Answer: A
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A firm producing calculators and cell phones purchases new machinery that increases the productivity of producing calculators
Assuming that the number of calculators produced is measured on the horizontal axis and the number of cell phones produced is measured on the vertical axis, how will the introduction of the new machinery change the firm's production possibilities curve? A) The production possibilities curve will shift to the left. B) The production possibilities curve will shift rightward. C) The production possibilities curve will pivot rightward about the vertical axis. D) The production possibilities curve will pivot rightward about the horizontal axis.
The ________ the interest rate (discount rate) or the ________ the payment is to be received, the smaller the present value of a future payment will be
a. lower, nearer to b. lower, further into c. higher, nearer to d. higher, further into