When the residents of a nation are free to trade with foreigners, domestic producers will be able to
What will be an ideal response?
supply a larger quantity of goods they can produce at a relatively low cost.
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Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon
If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month. A) 100 B) 80 C) 120 D) 200
The shrinking gap between the income levels of poor and rich countries is known as the
a. conservative hypothesis. b. divergence hypothesis. c. convergence hypothesis. d. confluent hypothesis.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the loss in social welfare when an $8 per unit price floor is imposed on the market.
A. $1. B. $0. C. $3. D. $2.
In the long run, monopolistic competition starts to look like
A. monopoly. B. a market in disequilibrium. C. perfect competition. D. oligopoly.