If Freedonia changes its laws to allow international trade in software and the world price is lower than its domestic price, then it must be the case that
a. both consumer surplus and producer surplus increase.
b. consumer surplus increases and producer surplus decreases.
c. consumer surplus decreases and producer surplus increases.
d. both consumer surplus and producer surplus decrease.
b
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The outcome of regulating a natural monopoly using the marginal cost pricing rule is
A) that the firm makes a normal profit. B) that the firm maximizes its profit. C) that consumer surplus is less than what it would be if the firm maximized its profit. D) an efficient level of production. E) that the firm makes an economic profit.
Property and casualty insurance companies are supervised and regulated by the
A) Federal Home Loan Bank Board. B) Securities and Exchange Commission. C) states in which they operate. D) Federal Reserve.
When actual output increases the potential output, _____. a. more resources become unemployed. b. prices remain constant
c. prices tend to increase. d. nominal GDP decreases. e. resource prices decrease.
Ashley was being treated unfairly by her boss, so she stormed off the job and two days later found another position. For two days, Ashley experienced
a. cyclical unemployment. b. structural unemployment. c. seasonal unemployment. d. frictional unemployment. e. being out of the labor force.