If a country begins to import more of a commodity, one can normally expect the price of the commodity to

A. remain unchanged in that nation.
B. rise and then fall below where it was originally.
C. rise in that nation.
D. drop in that nation.


Answer: D

Economics

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If two goods are complements, their cross elasticity of demand will normally be

A. zero. B. a negative number. C. a positive number. D. infinity.

Economics

The above figure shows a nation's production function. Point C is

A) unattainable given the nation's resource level. B) attainable if the nation uses resources efficiently. C) attainable if the nation uses resources inefficiently. D) the maximum amount of real GDP the nation can produce. E) the labor market equilibrium point.

Economics

The marginal social benefit from the production of the last unit of a good is $4,800. If the willingness to pay for that unit is $3,900, what is the external benefit from its production?

A) $900 B) $8,700 C) $3,800 D) $4,100

Economics

Refer to the table below. The perfectly competitive market for dairy products has a 40 percent chance of a high price of $3.00 and a 60 percent chance of a low price of $2.00. To maximize expected profit, Happy Cows should produce ________ units and Free Cows should produce ________ units.


Happy Cows and Free Cows are two separate perfectly competitive dairy farms. The table above shows the respective firms' marginal cost at various production levels.

A) 120; 120
B) 140; 120
C) 120; 140
D) 140; 140

Economics