(Advanced analysis) Answer the question on the basis of the following information: The equations for the demand and supply curves for a particular product are P = 10 - .4Q and P = 2 + .4Q, where P is price and Q is quantity expressed in units of 100
After an excise tax is imposed on the product, the supply equation is P = 3 + .4Q. Refer to the given information. The equilibrium quantity after the excise tax is imposed is:
A. 750 units.
B. 850 units.
C. 875 units.
D. 950 units.
Answer: C
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Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 30 chicken breasts per hour, while Tom's experience allows him to debone 60 chicken breasts per hour. Both Mike and Tom work 40 hours per week. Their average hourly productivity as a team is ________ chicken breasts.
A. 60 B. 30 C. 45 D. 90
People expect that the El Niño effect will cause drought in Australia in coming years. If most Australian firms expect their profits will fall during the next five years, Australia's ________ this year
A) aggregate demand will increase B) long-run aggregate supply will increase C) aggregate demand will decrease D) short-run aggregate supply will increase
In international trade, one country's gain is another country's loss
a. True b. False Indicate whether the statement is true or false
Which of the following is true if a country specializes in producing the goods for which it has a comparative advantage and then trades?
A. Output increases, and everyone in the economy benefits. B. Income is redistributed toward import-competing industries. C. There are gainers and losers, but the country as a whole is better off. D. Losers may outweigh the gainers, and a country may be worse off.