One reason trade restrictions exist is that:
A. workers cannot be shifted easily from one industry to another.
B. the long-run gains from free trade are small relative to the short-run costs.
C. the short-run gains from free trade are small relative to the long-run costs.
D. workers can be shifted easily from one industry to another.
Answer: A
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A decrease in U.S. interest rates relative to Japanese interest rates will
a. decrease the supply of dollars on the foreign exchange market b. increase the demand for dollars on the foreign exchange market c. increase the supply of dollars on the foreign exchange market d. cause the value of the dollar to appreciate e. cause U.S. exports to increase
If public subsidies for education were eliminated, what would you expect as an outcome in the market for educational services?
A. The quality of education would deteriorate. B. The price students pay to attend school would equal the value of an additional unit of education consumed. C. More students would enroll in school. D. There would be no correlation between the price students pay and the cost of providing the educational services.
Explain the difference between a movement along the consumption schedule and a shift in the consumption schedule.
What will be an ideal response?
Under pure competition the market price of an output is $3. The output schedule of a firm using input X is listed in the table below. If the price of input X is $12, how many units of input X will the firm employ to maximize profits?
A. 4
B. 5
C. 7
D. 9