Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?
A. The demand would increase, increasing both equilibrium price and quantity.
B. The supply would increase, decreasing equilibrium price and increasing equilibrium quantity.
C. The supply would decrease, increasing equilibrium price and decreasing equilibrium quantity.
D. The demand would decrease, decreasing both equilibrium price and quantity.
Answer: B
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While it is possible to erect barriers to foreign competition and save domestic jobs, restricting international trade may impose large costs on an economy
a. True b. False Indicate whether the statement is true or false
In a December 2007 New York Times column, Paul Krugman noted that
a. it is difficult to find instances of trade between high-wage countries in the modern era. b. it is difficult to find instances of trade between high-wage countries and low-wage countries in the modern era. c. the United States now imports more oil and other raw materials from other advanced countries than from the third world. d. the United States now imports more manufactured goods from the third world than from other advanced countries.
Accounting profits are
A) total revenue minus explicit costs. B) total revenue minus implicit costs. C) total revenue minus explicit and implicit costs. D) total revenue minus normal costs.
Tariffs and import quotas would benefit the following groups, except:
A. Consumers of the product B. Domestic producers of the product C. Workers in domestic firms producing the product D. The government of the importing country