The welfare impact of a preferential trade agreement depends on the difference between the amount of new trade that takes place because of the agreement and the change in international trade patterns that arises because of it
Indicate whether the statement is true or false
TRUE
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The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the price of salt is $0.40 per pound. The demand for salt is perfectly inelastic and the elasticity of supply is 1.5
With the tax, the price of salt paid by buyers in Healthyland is A) $0.40 per pound. B) $0.45 per pound. C) $0.35 per pound. D) $0.50 per pound.
Rostow's stages of growth concept could be improved by
a. demonstrating how a country moves from one stage to the next b. showing when different countries achieved a take-off c. illustrating the industries that could be leading sectors d. identifying the investment-to-income ratio that is typical for each stage e. specifying necessary investment and savings levels
Which of the following statements best illustrates the relationship between the market for products and the market for resources?
a. An increase in the price of cameras will decrease the demand for film. b. As income rises, people demand relatively smaller amounts of food. c. An increase in the demand for textiles will increase the demand for textile workers. d. An increase in the price of butter will cause more people to buy margarine. e. A decrease in the demand for tea will increase the demand for coffee.
All inferior goods have upward-sloping demand curves
a. True b. False Indicate whether the statement is true or false