If the world price for good A is below the domestic price for good A without trade, then the price the consumer pays for good A will ________ and the price the producer receives for good A will ________ with trade.
A. increase; increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase
Answer: B
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Real labor income is given by ________
A) MPL × L B) labor share of income × labor productivity × labor C) labor share of income × output D) all of the above E) none of the above
If the government did not provide national defense, explain why you would be more likely to give money to a Girl Scout who knocks on your door to sell cookies than to give money to a volunteer collecting for the provision of national defense
Suppose that the federal government provides wheat farmers with a price floor above the market equilibrium price of wheat, creating a surplus. Which of the following causes a reduction in the surplus of wheat?
a. An increase in the supply of wheat. b. An increase in the price of wheat. c. A decrease in the demand for wheat. d. Elimination of the price floor.
In a given year, suppose a company spends $100 million on intermediate goods and $200 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals
A) $200 million. B) $300 million. C) $500 million. D) $700 million. E) $800 million.