The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Currently 10 units are imported. The loss from shifting production from foreign to domestic producers equals
A) c + e.
B) i.
C) e.
D) a + c + d + e.
B
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Bilateral monopoly exists when
A) a single buyer confronts a single seller. B) there are two monopolistic buyers trying to buy resources. C) two labor unions are trying to represent the same group of workers. D) a firm is both a monopoly in its output market and a monopsonist in its input market.
Why would someone contribute money to a 501(c) group?
A. to make a contribution using someone else's name or under a false identity B. to ensure that the money is used on advertising C. so that the funds would be matched by the federal government D. to avoid having his or her name disclosed as a donor
In a perfectly contestable market in the long run, each firm
A. produces at the minimum point on its long-run average total cost curve. B. earns a profit below its opportunity cost of capital. C. avoids making capital expenditures. D. All of the responses are correct.
In the short-run Keynesian model, to close an expansionary gap of $10 billion dollars government purchases must be:
A. decreased by less than $10 billion. B. decreased by $10 billion. C. increased by $10 billion. D. increased by more than $10 billion.