In a large country case, an optimal tariff is one for which the terms-of-trade gain exceeds the:
a. producer surplus.
b. increased price of the product imported.
c. deadweight loss.
d. consumer surplus.
Ans: c. deadweight loss.
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A. not money. B. not money, because they can't be used to purchase goods and services. C. considered to be money. D. counted as a part of M2 but not M1.
A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare a. The total revenue gained from the two factories to the total costs of running the two factories
b. The marginal revenue expected from the second factory to the total costs of running the two factories. c. The marginal revenue expected from the second factory to the marginal cost of the second factory. d. The total revenue gained from the two factories to the marginal costs of running the two factories.