When a country imports a good or service from the rest of the world, the consumer gains because the greater the ________ in price and ________ in quantity bought, the greater is the ________ to the consumer
A) fall; decrease; gain
B) rise; increase; gain
C) fall, increase; gain
D) fall; increase; loss
E) rise; decrease; gain
C
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As the price of labor increases relative to the price of capital, the firm will move to a more labor-intensive production method to minimize costs
Indicate whether the statement is true or false
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal. What is the size of the producer surplus?
A. $8 billion B. $4.5 billion C. $12.5 billion D. $6.5 billion
In order for a Pareto improvement to occur, someone must suffer a loss so that others may benefit from the improvement
a. True b. False
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease