When Canada buys lemons from Mexico instead of growing lemons in heated greenhouses,
A. Canadian consumers will gain because lemon prices will drop.
B. Canadian lemon producers will gain because lemon prices will drop.
C. Canadian consumers will gain because lemon prices will rise.
D. Mexican lemon producers will lose because lemon prices in Canada will rise.
Answer: A
You might also like to view...
Think about indifference analysis. If a consumer is indifferent between 5 units of A and 8 units of B, then the consumer would
a. also be indifferent between 4 units of A and 9 units of B b. also be indifferent between 8 units of A and 5 units of B c. prefer 6 units of A and 8 units of B d. give up 1 unit of A to acquire 2 units of B e. not trade a unit of A for any units of product B
Trickle-down" which argues that the benefits of policies (tax cuts, etc.) which positively impact higher-income households and businesses, eventually will trickle down to those in lower income brackets and stimulate the economy.
What will be an ideal response?
If you own a building and you decide to use that building to open a book store,
A. the only cost relevant to this decision is the price you paid for the building. B. the opportunity costs equal the cost of inventory. C. there is an opportunity cost of using this building for a book store because it could have been used in other ways. D. there is no opportunity cost of using this building for a book store because you own it.
The change in real GDP resulting from an initial change in spending can be calculated by:
A. Dividing the multiplier by the initial change in spending B. Dividing the initial change in spending by the multiplier C. Multiplying the multiplier by the initial change in spending D. Adding the initial change in spending to the multiplier