Refer to the figure above. What is the producer surplus when the price is $50?
A) $100
B) $200
C) $400
D) $1,000
B
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Economists in different areas are on the lookout for "natural experiments" that can help provide strong evidence on a subject. An example of such a natural experiment
A) Exists in the case of the split between East and West Germany after World War II and how this provides evidence on the importance of protective institutions B) Exists in the case of the adoption of new technologies like the rail engine after 1850 and how it provides evidence of the importance of technology C) Exists in the case of the trade between states like Washington and Florida and how it provides evidence on the value of trade D) Exists in the case of the case of the U.S. and Mexico given their location in North America
Suppose Kelly and Jerry are at an allocation bundle where their MRS are not equal
a. they are an equilibrium. b. there are gains from trade. c. they are happy. d. they are outside the Edgeworth box. e. they are trading.
If a tariff on beef were implemented, which of the following would rise?
a. exports and net exports b. exports but not net exports c. net exports but not exports d. neither exports nor net exports
Graphically illustrate (using the WS and PS relations) and explain the effects of an increase in the markup on the equilibrium real wage, the natural rate of unemployment, the natural level of employment, and the natural level of output
What will be an ideal response?