According to the graph shown, if this were depicting an autarky economy, the amount being bought domestically is:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 45 at $11 each.
B. 45 at $23 each.
C. 85 at $16 each.
D. 120 at $23 each.
C. 85 at $16 each.
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One reason that international trade is restricted is that
A) the individual gain to parties who benefit from the protection is much larger than the individual loss to parties who lose. B) the government completely pays the losers from international trade for their losses. C) protectionism benefits consumers. D) the government cannot measure the cost of protectionism.
Which of the following would not shift the demand curve for pork?
a. an increase in the price of beef b. an increase in the price of pork c. an increase in the incomes of pork consumers d. a widespread advertising campaign for pork e. a finding that consumption of beef increases the risk of heart attack
Suppose that minimum efficient scale is approximately 20 percent of maximum potential market demand. In that case,
a. there will be approximately 20 firms in the market b. we should expect to see a few large competitors c. we should expect to see many small competitors d. we should expect a natural monopoly to emerge e. minimum efficient scale is too small for perfect competition to exist
A decline in U.S. interest rates causes the U.S. dollar to depreciate, making U.S. exports more attractive and imports less attractive. As a result, exports increase, imports decrease, and net exports increase, resulting in an increase in aggregate quantity demanded. This is an example of the _____
a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect