If a customs union leads to a large amount of trade creation relative to trade diversion, it may be beneficial to world welfare
Indicate whether the statement is true or false
TRUE
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Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the
a. demand for flour to increase. b. demand for flour to decrease. c. supply of flour to increase. d. supply of flour to decrease.
Which considerations regarding regulatory policies were related to the production of the Toyota Prius in the United States?
A.Toyota had to make sure it complied with health and safety regulations. B. Since the car was a hybrid, Toyota did not have to worry about federal emissions standards. D. All of the above C. Since Toyota is a Japanese producer, the regulatory policies of the United States did not apply to its new cars.
Scarcity:
A. is a problem only in industrialized economies. B. is a condition measured by the quantity of goods available. C. exists everywhere because human wants can never be satisfied. D. is a problem only in poor economies.
If the social cost of producing a good or service exceeds the private cost
A) a positive externality exists. B) the sum of consumer surplus and producer surplus is maximized. C) the market achieves economic efficiency. D) a negative externality exists.