The United States imports t-shirts from Asia. As a result, U.S. consumers pay ________ otherwise and Asian producers receive ________ otherwise
A) a higher price than; a higher price than
B) a higher price than; a lower price than
C) a lower price than; a higher price than
D) a lower price than; a lower price than
E) the same price as; the same price as
C
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Jacob buys less soda when the price of soda rises 10 percent, while the prices of all other goods also rise 10 percent. Jacob is
A) behaving in accordance with classical economic theory. B) worrying too much about a coming recession. C) suffering from money illusion. D) paying too much attention to changes in relative prices.
In general, if a firm is producing at a level at which its expected marginal revenue is ________ its expected marginal cost, it should ________ production to maximize ________.
A) more than; increase; actual profit B) less than; decrease; expected profit C) more than; decrease; expected profit D) less than; increase; expected profit
Politicians will often be able to gain from support of trade restrictions because
A) the restrictions will lead to lower prices and substantial benefits for consumer groups. B) the restrictions will generate substantial benefits for consumer groups at the expense of well-organized labor and industrial interests. C) organized interest groups benefiting from the restrictions will make large contributions to political campaigns while most others will not feel strongly about the restrictions. D) foreigners benefiting from the restrictions will be a major source of political contributions.
The perfectly competitive firm's demand curve has
A) a negative slope. B) a positive slope. C) a slope of infinity. D) a slope of 0.