Education is an example of a positive externality.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 9-9. Fenwick currently both produces and imports pistachios. The government of Fenwick decides to restrict international trade in pistachios by imposing a quota that allows imports of only 5 million pounds each year
Figure 9-9 shows the estimated demand and supply curves for pistachios in Fenwick and the results of imposing the quota. Answer questions a-j using the figure. a. If there is no quota what is the domestic price of pistachios and what is the quantity of pistachios demanded by consumers? b. If there is no quota how many pounds of pistachios would domestic producers supply and what quantity would be imported? c. If there is no quota what is the dollar value of consumer surplus? d. If there is no quota what is the dollar value of producer surplus received by producers in Fenwick? e. If there is no quota what is the revenue received by foreign producers who supply pistachios to Fenwick? f. With a quota in place what is the price that consumers of Fenwick must now pay and what is the quantity demanded? g. With a quota in place what is the dollar value of consumer surplus? Are consumers better off? h. With a quota in place what is the dollar value of producer surplus received by producers in Fenwick? Are domestic producers better off? i. Calculate the revenue to foreign producers who are granted permission to sell in Fenwick after the imposition of the quota. j. Calculate the deadweight loss as a result of the quota.
When firms in an industry produce differentiated products,
a. long-run economic profit will always be zero b. short-run economic profit will always be positive c. the demand curves facing firms will always be perfectly elastic d. the demand curves facing firms will always be downward-sloping e. new firms will always have an incentive to enter the industry in the long run
If a person did any work as a paid employee during the Bureau of Labor Statistics survey reference week, how is she classified?
A) as an employed person B) as not in the labor force C) as an unemployed person D) as part of the labor force E) ?a and d
an announcement that the "beginning stocks" of corn were higher than expected is an indication that:
a) prices would be expected to decrease more than previously expected b) prices would be expected to increase more than previously expected c) there is no effect on prices: stocks are unrelated to the level of future prices