Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States is represented by the following set of equations:QS = -25 + 10PQD = 875 - 5PIf the United States engages in free trade and the international price of MP3 players is $50, it would import ________ MP3 players from the rest of the world.
A. 225
B. 250
C. 475
D. 150
Answer: D
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Refer to above figure. In the absence of trade, what is the country's producer surplus?
What will be an ideal response?
Cost-push inflation can be shown on an aggregate supply aggregate demand diagram as
A) a rightward shift of the aggregate supply curve with no change in aggregate demand. B) a rightward shift in the aggregate demand curve with no change in aggregate supply. C) a leftward shift in the aggregate demand curve with no change in aggregate supply. D) a leftward shift in the aggregate supply curve with no change in aggregate demand.
Contracts tend to increase the level of specialization in an economy
a. True b. False
A mixed economic system is best described as an economy with a mix of
A. domestic and foreign firms. B. free markets and government control. C. state and federal governments. D. for-profit organizations and not-for-profit organizations.