The "shoe-leather" cost of a fully anticipated inflation is
A) the inconvenience of holding less cash.
B) the higher prices of imported raw materials due to currency depreciation.
C) the extra time spent on shopping in order to beat price increases.
D) the effort of changing posted prices on price tags and producing new price lists and catalogs.
A
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Refer to the figure above. What is the consumer surplus when Lithasia engages in trade and the government imposes a $1 tariff on chairs?
A) $100 B) $120 C) $180 D) $200
Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. This suggests that
a. Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will export coffee. b. Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will import coffee. c. other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will export coffee. d. other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.