Refer to the table below. If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will:
Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qdd) and Column 3 is the quantity supplied domestically (Qsd).
A. Neither export nor import the product
B. Export some units of the product
C. Import some units of the product
D. Not produce the product
A. Neither export nor import the product
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Nations would gain from trade if a(n) _________ exists
a. absolute advantage b. exchange rate c. specialization d. comparative advantage e. terms of trade
Suppose there are two firms that make automobiles, Ferrari and General Motors. Ferrari has one assembly plant with only a few hundred employees. General Motors has several assembly plants and thousands of employees. If there are economies of scale in automobile production, which statement is true? a. General Motors should produce fewer cars to improve its efficiency. b. Efficiency allows
General Motors to use fewer raw materials per automobile. c. The output level that makes Ferrari most efficient also makes General Motors most efficient. d. When the ATC curves of the two firms cross, General Motor's ATC curve is falling. e. The average fixed cost curve for Ferrari is higher because they produce fewer cars.
If the price of airline tickets falls, what will happen to the demand curve for flight attendants?
a. It will shift to the right. b. It will shift to the left. c. The direction of the shift is ambiguous. d. It will remain unchanged.
In the case of nonexcludable goods, economists contend that the market ___________ produce these goods because of the ________________________
A) will; free rider problem B) will not; law of diminishing marginal utility C) will not; law of diminishing marginal returns D) will not; free rider problem.