This topic contains a solution. Click here to go to the answer

Author Question: The U.S. sugar quota A) generates government revenue. B) results in net welfare benefits to the ... (Read 204 times)

2125004343

  • Hero Member
  • *****
  • Posts: 566
The U.S. sugar quota
 
  A) generates government revenue.
  B) results in net welfare benefits to the U.S. economy.
  C) results in benefits to sugar producers that exceed the cost to consumers.
  D) results in costs to consumers that exceed the benefits to sugar producers.
  E) does not result in an efficiency loss.

Question 2

Explain how does a rise in real income affect aggregate demand?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joneynes

  • Sr. Member
  • ****
  • Posts: 376
Answer to Question 1

D

Answer to Question 2

A rise in domestic real income, Y, leads to a rise in disposable income, Yd. This raises the spending on imports, IM, thus lowering the current account, CA, and reducing aggregate demand, AD. However, the rise in Yd also causes a rise in consumption, C, and raises aggregate demand, AD, by more than the corresponding decrease.




2125004343

  • Member
  • Posts: 566
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


FergA

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

For a complete list of videos, visit our video library