Exhibit 2 shows that before trade, the producer surplus equaled ______; after trade, the producer surplus ______.
a. a + b + c; expands to a + b + c + d
b. d; expands to b + c + d
c. e + f; expands to b + c + d + e + f
d. a + b + c; expands to a + b + c + e + f
c. e + f; expands to b + c + d + e + f
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The above figure shows the U.S. market for replacement cell phone batteries. Area E is the
A) producer surplus when there is free trade. B) deadweight loss from tariff. C) tariff revenue. D) increase in producer surplus due to the tariff. E) gain in total surplus due to the tariff.
Since 1970, the composition of federal expenditures has:
a. been virtually unchanged, but federal spending as a share of GDP has declined substantially. b. been virtually unchanged, but federal spending as a share of GDP has increased sharply. c. shifted away from national defense and toward spending on income security. d. shifted away from income security income transfers and toward spending on national defense.
In his book The Other Path, de Soto suggests that countries will grow more quickly if bureaucratic barriers to free enterprise are reduced.
Answer the following statement true (T) or false (F)
Why is it hypothesized that the slope of the age-earnings profile is likely steeper for workers who remain with their job (i.e., job stayers) compared to workers who experience job separation (i.e., quits and layoffs)?
A. Workers who experience a job separation experience a jump down in the age-earning profile, which then must be flatter by construction. B. Workers who experience job turnover, both quits and layoffs, are less productive than job stayers. C. Workers with longer tenure at their current firm have invested more in valuable firm-specific training. D. Workers who experience a job separation must pay for their own job retraining. E. None of the above explain why the age-earnings profile is steeper for job stayers compared to workers who experience job separation.