The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the marginal cost of the last gallon of milk produced is
A) $3.00 a gallon.
B) $3.50 a gallon.
C) $4.00 a gallon.
D) $4.50 a gallon.
D
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Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the market price is $35. Which of the following statements is true?
A) There is a surplus that will cause the price to decrease; quantity demanded will then increase and quantity supplied will decrease until the price equals $25. B) There is a surplus that will cause the price to increase; quantity demanded will then decrease and quantity supplied will increase until the price equals $25. C) There is a surplus that will cause the price to decrease; quantity supplied will then increase and quantity demanded will decrease until the price equals $25. D) There will be a surplus that will cause the price to decrease; demand will then increase and supply will decrease until the price equals $25.
Refer to the World View article titled "North Korea's Food Shortage Grows." If North Korea reduces the size of its military and produces more food, this is most consistent with
A. A laissez faire policy. B. A movement along the economy's production possibilities curve. C. Privatization. D. The law of increasing opportunity costs.
Regression analysis indicates that there are job-related characteristics that may explain some, if not all, of the wage gap between men and women, including hours worked, job tenure, career choice, and choice of college major
Briefly discuss the differences between men and women with respect to these four characteristics.
Tariffs to limit imports to "protect U.S. jobs" will also
A) stimulate exports. B) limit exports. C) decrease import prices. D) reduce domestic production of import-threatened products.