A demerit good is a good that __________
Fill in the blank(s) with the appropriate word(s).
Ans: Comes with an external cost to society
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The above table gives data for the nation of Sueland. What is the value of net exports?
A) $43 billion B) $234 billion C) -$43 billion D) $511 billion
Natural gas found in Oklahoma is an example of
A) physical capital. B) land. C) human capital. D) labor.
When there is underproduction in a market,
A. market price is too high. B. there is a deadweight loss. C. the total of consumer and producer surplus is maximized. D. there is excess quantity supplied.
U.S. firms can produce and sell electric fans for $25. The United States can also import electric fans from China at $40 each and from Canada at $45 each. Electric fans made in the United States, China, and Canada are identical. Currently, the United States imposes a 30% tariff on imported electric fans. For the United States, are there trade diversion losses, trade creation gains, or both as a result of the formation of NAFTA?
a. There are only trade diversions losses b. There are only trade creation gains. c. There are neither trade creation gains nor trade diversion losses. d. There are both trade creation gains and trade diversion losses.