Relative to a no-international-trade initial situation, if the United States imported wine from other countries with a comparative advantage in wine production, the U.S. domestic price of wine:
a. would rise, but domestic output would fall.
b. would fall, but domestic output would rise.
c. would rise, and domestic output would rise.
d. would fall, and domestic output would fall.
d
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In order to infer expected future exchange rates, we must have a forward exchange market in a currency
Indicate whether the statement is true or false
If an industry has 25 firms that collectively have $150 million in total sales and the top three firms in this industry account for $78 million in sales and the fifth through twenty-fifth firms account for $60 million in sales, what is the amount of
sales for the fourth largest firm? A) $12 million B) $6 million C) $18 million D) none of the above
What is the effect on the consumer of a firm having a monopoly on a particular product the consumer needs?
a. The consumer will pay a lower price for the product because the company can only produce as many units as it can sell. b. The consumer will pay a lower price for the product because the company must price products well to keep competitors out of the market. c. The consumer will have to pay a higher price for the product because costs rise as competitors enter the market. d. The consumer will have to pay a higher price for the product than if there were competition for producers.
An increase in wages will cause the aggregate supply curve to
a. shift outward. b. shift inward. c. become flatter. d. become steeper.