When the world price of the traded good is lower than the domestic no-trade equilibrium price, free trade causes domestic production to fall and domestic consumption to rise
a. True
b. False
Indicate whether the statement is true or false
True
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Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. If the price of a magazine is $5 and the price of a chocolate bar is $2
50, which of the following combinations maximizes Sonya's utility? A) 1 magazine and 18 chocolate bars B) 2 magazines and 20 chocolate bars C) 3 magazines and 14 chocolate bars D) 5 magazines and 10 chocolate bars
Cost-push inflation is due to:
a. "too much money chasing too few goods". b. the economy operating at full employment. c. increases in production costs. d. all of these.
If output is increased beyond the point where total profit is maximized,
a. marginal profit will be zero. b. marginal profit will be negative. c. marginal profit will be positive. d. MR > MC.
Comparing factors that affect unemployment rates among modern industrial nations,
A. Germany and French workers can collect nearly 60 percent as much as they could earn working, thus discouraging the incentive to work. B. Japanese and American unemployment benefits are 70 percent as much as workers could earn working, thus encouraging the incentive to work. C. Over 90 percent of Japanese and American workers easily qualify for unemployment benefits. D. Less than 50 percent of German and French workers qualify for unemployment benefits.