A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will ________, producer surplus will ________, and total surplus will ________
A) increase; decrease; increase
B) increase; decrease; decrease
C) decrease; decrease; decrease
D) decrease; increase; increase
A
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Learning by doing, which leads to lower costs in the long run, is often
A) increased when new machinery is brought into the production process. B) a function of cumulative output, that is producing more of the good or service. C) improved through better use of computers in the production process. D) not very important to most firms.
The price where quantity demanded is equal to quantity supplied is known as
a. equilibrium price. b. equilibrium quantity. c. equilibrium rate. d. equilibrium level.
When the supply of a good is perfectly elastic, the entire tax is paid by the buyers
a. True b. False Indicate whether the statement is true or false
Advocates of an active policy associate a low cost with the passive approach so, they favor an active stabilization policy to stimulate aggregate demand
Indicate whether the statement is true or false