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.
A
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Excess demand of a product exerts __________pressure on prices
a. Zero b. No c. Upward d. Downward
"He [the producer] intends only his gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention." What is the "invisible hand" referred to in this statement?
a. the elasticity of the market demand curve b. the power of government when decisions are made democratically c. the guidelines and regulations set for his industry by the government d. the incentive structure accompanying market prices
Consumer surplus is
a. a concept that helps us make normative statements about the desirability of market outcomes. b. represented on a graph by the area below the demand curve and above the price. c. a good measure of economic welfare if buyers' preferences are the primary concern. d. All of the above are correct.
Suppose that demand for portable power banks increases, and simultaneously, the supply of portable power banks increases. Which of the following would you conclude definitely will occur in the market for portable power banks?
A. The market clearing price will rise. B. The market clearing price will fall. C. The equilibrium quantity will fall. D. The equilibrium quantity will rise.