Decreases in the price level will
A) raise consumption because real wealth increases.
B) lower consumption because goods and services are less affordable.
C) raise consumption because goods and services are more affordable.
D) lower consumption because real wealth decreases.
A
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Suppose the government of Marina aims to minimize the deadweight loss of subsidy. It should: a. provide a subsidy in a market with more inelastic demand. b. provide a subsidy in a market with unit elastic supply
c. provide a subsidy in a market with more elastic demand. d. provide a subsidy in a market with perfectly elastic supply.
Nontariff barriers are:
A. maximum limits on the quantity or total value of specific products imported to a nation. B. excise taxes or duties placed on imported products. C. licensing requirements, unreasonable quality standards, and the like designed to impede imports. D. government payments to domestic producers to reduce the world prices of exported goods.