When a country exports a good, the country's producer surplus ________, consumer surplus ________, and the country ________ from the trade
A) increases; increases; gains
B) decreases; increases; gains
C) increases; decreases; gains
D) decreases; decreases; loses
E) increases; decreases; loses
C
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For the firm in Figure 8.1, the profit-maximizing (loss-minimizing) price and level of output are:
A) P2 and Q2. B) P1 and Q1. C) P4 and Q1. D) P3 and Q1.
A technological improvement can cause the production possibilities curve to shift outward because
A) it increases costs and contributes to lower production rates. B) maximum feasible outputs of both goods increase. C) production will fall, but jobs will be saved. D) it causes increases in unemployment.
A profit-maximizing monopolist
A. engages in more research and development activity than a perfectly competitive firm. B. produces the output level where P = MC. C. produces less output than a perfectly competitive industry. D. produces at the unit elastic point on the market demand curve.
When quantity demanded is greater than quantity supplied, the resulting shortage causes the price to fall.
Answer the following statement true (T) or false (F)