Economists argue for free trade in export markets because
A) all consumers and producers benefit from exporting goods.
B) the gains to the U.S. producers outweigh the losses to the U.S. consumers.
C) the gains to the U.S. consumers outweigh the losses to the U.S. producers.
D) no one is made worse off by exporting goods.
E) exporting goods decreases total surplus.
B
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Games:
A. only have one possible stable outcome. B. may have noncooperative equilibriums that are positive-positive outcomes. C. must have a dominant strategy present in order to reach an equilibrium. D. None of these statements is true.
When negative externalities exist in the production of a good, the marginal social cost of producing the good:
A. is less than the marginal cost borne by the firm. B. equals the marginal cost borne by the firm minus marginal cost borne by a third party that results from the production and consumption of the good. C. equals the marginal cost borne by the firm plus the marginal cost borne by third parties from the production and consumption of the good. D. is equal to the marginal benefit received by consumers if competitive markets exist and there is no government intervention.
A logroll refers to a(n):
A. bunch of individuals who are indifferent about others' proposals, but agree to support all the requests, so each can get what she wants. B. individual who is indifferent about others' proposals, but agrees to support all the requests, so he can get what she wants. C. bunch of individuals who are indifferent about one single proposal, but agree to support it, so each can get what she wants. D. bunch of individuals who care about others' proposals, and agree to support each other.
Which of the following is a distinction between perfectly competitive and monopolistic competition?
A. Perfectly competitive firms must compete with rival sellers; monopolistically competitive firms do not confront rival sellers. B. Monopolistically competitive firms can raise their price without losing sales; perfectly competitive firms must lower their price in order to sell more of their product. C. Perfectly competitive firms confront a perfectly elastic demand curve; monopolistically competitive firms face a downward-sloping demand curve. D. Perfectly competitive firms may make either economic profits or losses in the short run, but monopolistically competitive firms always earn an economic profit.