The island nation of Sonorez produces 200 tons of wheat and 500 tons of corn. Munisia, its neighboring country, produces 400 tons of wheat and corn each. Sonorez would like to consume another 80 tons of wheat and is willing to give up a 100 tons of corn for it. Munisia on the other hand would like an extra 50 tons of corn and is willing to give up 100 tons of wheat. Which of the following
conclusions can be drawn from this?
a. The 2 countries will not trade because they will not come to a common bargain.
b. Sonorez will trade 100 tons of wheat for extra corn.
c. Munisia will trade 100 tons of corn for extra wheat.
d. Sonorez will trade 50 - 100 tons of corn with Munisia for 80 - 100 tons of wheat.
D
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The relationship between quantity supplied and the price of output is such that
A) an increase in quantity will automatically lead to a reduction in price. B) an increase in price will lead to an increase in quantity supplied. C) an increase in price will produce an inward shift in the supply curve. D) quantity will decrease as the number of firms increases.
The first major piece of antitrust legislation was:
a. Clayton Act. b. Celler-Kefauver Act. c. Sherman Antitrust Act. d. Rockefeller Act. e. Robinson-Patman Act.
When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced
a. True b. False Indicate whether the statement is true or false
A lower price elasticity of demand coefficient occurs when:
A. many substitutes exist. B. the quantity demanded is more responsive. C. few substitutes exist. D. the market is broadly defined.