The primary gain from international trade is:
A. increased employment in the domestic export sector.
B. more goods than would be attainable through domestic production alone.
C. tariff revenue.
D. increased employment in the domestic import sector.
B. more goods than would be attainable through domestic production alone.
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Suppose you rent an apartment and are worried about a break-in that results in theft of your property. Suppose your monthly consumption level is currently $4,000 but a break-in would result in you having to finance your purchase of replacement property -- and this would reduce your current consumption to $2,000 per month. There is a 10% chance of a break-in. a. On a graph with "consumption" on the horizontal and "utility" on the vertical axis, illustrate a utility/consumption relationship that is consistent with risk averse tastes. b. On your graph, illustrate the utility in the "good" state, the utility in the "bad" state and the expected utility of facing the gamble. c. Which of these changes when the probability of a break-in increases to 20%?
d. A renter's insurance policy consists of a premium p and a benefit level b. What is (b,p) for full, actuarily fair insurance before and after the increase in risk? e. True or False: You are more likely to buy actuarily fair full insurance after the increase in risk than before. What will be an ideal response?
Suppose that a 15 percent decrease in price leads to an increase in the quantity demanded of 10 percent,
A. demand is elastic. B. demand is inelastic. C. elasticity of demand is unitary. D. None of the above is correct.
Chloe's Café sells gourmet cinnamon rolls. In the long run, the café incurs a total cost of $500 to produce 1,000 cinnamon rolls. If Chloe's Café exhibits constant returns to scale between 1,000 and 1,500 cinnamon rolls, the long-run average total cost for 1,250 cinnamon rolls is a. higher than $0.50. b. lower than $0.50. c. equal to $0.50
d. equal to $500.
Don worked as a machinist all his life, and was recently laid off because his plant closed and the jobs were outsourced to India. There don't seem to be any machinist jobs in the area anymore. Don would be considered:
A. Don is a discouraged worker. B. frictionally unemployed. C. structurally unemployed. D. real-wage unemployed.