"Economists have demonstrated that imports benefit consumers while causing losses to producers, and exports benefit producers while causing losses to consumers. In the balance then, international trade neither benefits nor hurts a nation as a whole." Evaluate this statement
The first part is true, but the conclusion is incorrect. With both imports and exports, the gains to one party outweigh the losses to the other party. International trade, therefore, leads to net gains for a country as output and consumption are expanded beyond what could be achieved in the absence of trade.
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In the 1990 Clean Air Act Amendments,
a. Title IV uses a strict command-and-control approach to regulate sulfur dioxide b. market-based approaches are integrated in certain of the titled sections c. market-based policies predominate over command-and-control initiatives d. there were no provisions to control ozone depletion
In the above figure, suppose that the government sets a limit to production at 10 units of output and the price rises to $4. In comparison to a competitive market the consumer surplus would fall by
A) $0. B) $10. C) $15. D) $20.
Give an example of government intervention that is intended to reduce an externality
PriceQuantity Demanded$01,000$1400$2200$3100$425 Refer to the table, which shows the number of MP3 downloads demanded per month for the students at a certain university. Which of the following statements does NOT explain why the quantity demanded was not higher for a price of $0?
A. People would rather pay for the downloads. B. MP3s take up space on a computer's hard drive. C. There are only so many songs that people want to listen to. D. Downloading an MP3 takes time.