Suppose France subsidizes French wheat farmers, while Germany offers no subsidy to German wheat farmers. As a result of the French subsidy, sales of French wheat to Germany
a. may prompt German farmers to invoke the unfair-competition argument.
b. increase the consumer surplus of German buyers of wheat.
c. increase the total surplus of the German people.
d. All of the above are correct.
d
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Suppose a decrease in supply raises the price from $4.00 to $5.50 and decreases the quantity demanded from 2,000 to 1,500. Using the midpoint method, the elasticity of demand equals
A) 2.10. B) 1.11. C) 0.90. D) 0.72. E) None of the above answers is correct.
The aspect of the Second Banking Crisis of the 1930s that distinguished it from the First Banking Crisis was that during the second crisis ___
a. the Federal Reserve finally decided to act as lender of last resort b. the stock market boom finally came to an end with the crash c. banks in all regions of the country failed d. President Roosevelt asked Congress to establish Federal deposit insurance
When any effort by government causes the supply of a good to rise, what happens to the supply curve for that good?
(A) The supply curve is not affected. (B) It shifts to the right. (C) It shifts to the left. (D) It reverses direction.
Refer to the data. The marginal cost column reflects:
A. the law of diminishing returns.
B. the law of diminishing marginal utility.
C. diseconomies of scale.
D. economies of scale.