Which of the following statements is CORRECT?
A) When demand increases, both the price and the quantity increase.
B) When demand decreases, the price rises and the quantity decreases.
C) When supply increases, the quantity decreases and the price rises.
D) When supply decreases, both the price and the quantity decrease.
A
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The above table gives the demand schedule for Billy Bob's BBQ ribs. The demand for Billy Bob's ribs over the price range of $1 per pound to $3 per pound is
A) perfectly elastic. B) elastic. C) unit elastic. D) inelastic.
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true?
A. The United States has the absolute advantage in the production of both shoes and apples. B. Canada has the absolute advantage in the production of both shoes and apples. C. The United States has the absolute advantage in the production of shoes and Canada has the absolute advantage in the production of apples. D. Canada has the absolute advantage in the production of shoes and the United States has the absolute advantage in the production of apples.
Answer the following statements true (T) or false (F)
1. Historically, the international trade policies of the United States favored many import restrictions until the early 1930's. 2. The Hawley-Smoot Tariff Act of 1930 promoted free trade by calling for tariff reductions in excess of 30 percent on agricultural products. 3. The Export-Import Bank is owned by 150 nations, including the United States. 4. Chile has been invited to join the European Union. 5. The Uruguay round of GATT negotiations was encumbered by strong disagreements over reducing domestic support of agriculture and subsidies of agricultural exports.
Liam is willing to cut lawns for a minimum of $200 a week. He is, however, paid $250 for the same service by a lawn maintenance company. This is an example of
a. consumer surplus. b. employment discrimination. c. producer surplus. d. the derivation of accounting profit.