Which of the following provides the foundation of the case for free trade?
What will be an ideal response?
the law of comparative advantage
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When the profit-maximizing output level for a firm can be decided by setting output at the level where price is equal to marginal cost, the market structure is
a. perfect competition b. monopolistic competition c. duopoly d. monopoly e. oligopoly
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
Based on purchasing power parity (PPP) and the quantity theory of money, everything else remaining unchanged, if Japan's real income rises relative to real income in the United States, there would be
A. a decrease in the demand for yen in the foreign exchange market. B. an appreciation of the dollar. C. an appreciation of the yen. D. uncovered interest rate parity.
In the above figure, the optimal level of pollution cleanup is
A. Q1. B. Q2. C. Q3. D. Q4.