According to the graph shown, if this economy were to open to trade, domestic prices would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. remain $16 for domestically produced goods, and be $23 for those units imported.
B. increase to $23 for all units.
C. remain $16, with more units sold overall.
D. decrease to $11 for all units.
B. increase to $23 for all units.
You might also like to view...
Sometimes the government deals with externalities by creating laws to regulate behavior instead of using taxes to correct the market failure. So, requiring auto manufacturers to install a device called a catalytic converter which removes some toxins from exhaust may be preferable to a gas tax that reduces driving levels. This route is often preferred because:
a. c and e. b. it requires less technological development. c. it doesn't penalize drivers of clean cars. d. only car drivers pay for the externality. e. the cost of the externality is unknown.
Suppose that Charles wants to dine at a fancy restaurant, but the only available table is in the smoking section. Charles dislikes the smell of cigarette smoke. He notices that only one person, Sam, is smoking in the smoking section. Charles values the absence of smoke at $40 . Sam values the ability to smoke in the restaurant at $15 . Which of the following represents an efficient solution in
the absence of transaction costs? a. Sam continues to smoke because he has a right to smoke in the smoking section. b. Charles offers Sam between $15 and $40 not to smoke. Sam accepts, and both parties are better off. c. Charles offers Sam between $15 and $40 not to smoke. Sam declines because he has a right to smoke in the smoking section. d. Only a government policy banning smoking in restaurants will solve this problem.
The most important determinant of the level of consumption is
A. credit availability. B. the level of disposable income. C. the stock of liquid assets in the hands of consumers. D. consumer expectations.
What is the smallest form of a bit coin called?
A. Satoshi B. Excell C. Nakamoto D. coinage