If the United States imposes a quota on French wines, the result in the short run is likely to be ________ profits for American wine producers and ________ profits for French wine producers.
A) lower; lower
B) lower; higher
C) higher; lower
D) higher; higher
Ans: C) higher; lower
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According to the graph, how many board feet of lumber will be imported if imports are allowed into the United States?
a. 1,200,000
b. 500,000
c. 1,000,000
d. 740,000
Over a five-year span, the ABC Co reduced the amount of labor it hired. At the same time, the marginal productivity of labor increased. Which of the following COULD explain this observation?
A) the law of diminishing marginal returns B) labor saving technical change C) organizational innovation D) All of the above.
Sarah's demand curve for whiskey has the same slope as Pete's; however, it lies to the right of Pete's. An increase in the price of whiskey will cause
A) Sarah to incur a greater loss of consumer surplus than Pete will. B) Pete to incur a greater loss of consumer surplus than Sarah will. C) Sarah and Pete to incur the same loss of consumer surplus. D) Sarah's demand curve to shift closer to Pete's.
If a chemical factory causes noxious fumes to be emitted in the neighborhood, a third party would be:
a. workers at the factory. b. factory managers. c. chemical customers. d. local homeowners. e. owners of the factory.