Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:
a. destroy the rice market in both countries.
b. drive X to specialize in rice and Y to specialize in tuna.
c. drive Y to specialize in rice and X to specialize in tuna.
d. cause both X and Y to reject international specialization.
e. result in lower total output of rice and tuna.
b
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Suppose the market supply curve is upward sloping and market demand is perfectly inelastic. If the market price is held above the equilibrium level, which of the following statements about the resulting outcome is not true?
A) The decrease in consumer surplus is fully captured by the producers. B) There will be an excess quantity supplied. C) Quantity demanded will remain the same. D) Quantity demanded will decline.
Considering the information in the table shown, Jack's total utility from consuming bundle D would be:
This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.
A. 1,160.
B. 1,300.
C. 950.
D. 2,220.
Which pair of groups benefits from an import quota when quota rights are given away without charge?
a. domestic and foreign producers b. domestic producers and foreign consumers c. domestic government and foreign consumers d. domestic government and producers e. foreign consumers and producers
Refer to the graph shown.
The richest 10 percent of the families earn:
A. 48 percent of the income. B. 52 percent of the income. C. 63 percent of the income. D. 37 percent of the income.