If a foreign country imposes a voluntary export restraint, then the:
a. consumer surplus will be lower than would be so if the home country imposes a tariff
b. producer surplus will be lower than would be so if the home country imposes a tariff.
c. area of government revenue will be taken by the foreign country.
d. deadweight loss is smaller than would be so if the home country imposes a tariff.
Ans: c. area of government revenue will be taken by the foreign country.
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In the above table, the marginal product of the second worker is
A) 1. B) 2. C) 3. D) 4.
Suppose that Paraguay can produce 12 wheat or 3 corn and Bolivia can produce 4 wheat or 2 corn. Suppose that opportunity costs are constant. Which of the following is a potentially agreeable trade arrangement for Paraguay and Bolivia?
A) Paraguay trades one corn to Bolivia for three units of wheat. B) Bolivia trades one corn to Paraguay for three units of wheat. C) Bolivia trades one corn to Paraguay for one wheat. D) Paraguay trades one wheat to Bolivia for two corn.
A sizable appreciation of the U.S. dollar in the mid-1980s
A. raised U.S. exports and imports. B. raised U.S. exports and reduced imports. C. reduced U.S. exports and imports. D. reduced U.S. exports and raised imports.
If we compare median family income in the U.S. for families headed by an adult with no more than a high school education to that of families headed by an adult with a bachelor's degree, which of the following best describes what we will find?
a. Median family income for families headed by an adult with a bachelor's degree is approximately 70 percent higher than families headed by an adult no more than a high school education. b. Median family income for families headed by an adult with a bachelor's degree is approximately 25 percent higher than families headed by an adult no more than a high school education. c. Median family income for families headed by an adult with a bachelor's degree is approximately 50 percent higher than families headed by an adult no more than a high school education. d. Median family income for families headed by an adult with a bachelor's degree is approximately 90 percent higher than families headed by an adult no more than a high school education.