If the demand for light bulbs increases, producer surplus in the market for light bulbs
a. increases.
b. decreases.
c. remains the same.
d. may increase, decrease, or remain the same.
a
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Free trade is better than autarky for a small country
Indicate whether the statement is true or false
Since 1970, the poverty rate has largely fluctuated between:
A. 5 and 10 percent. B. 10 and 15 percent. C. 15 and 25 percent. D. 0 and 5 percent.
Refer to the graph shown. Initially, the market is in equilibrium with price equal to $25 and quantity equal to 100. As a result of a per-unit tax imposed by the government, the supply curve shifts from S0 to S1. The effect of the tax is to:
A. reduce producer surplus by $400. B. give government tax revenues of $400. C. reduce producer surplus by $375. D. give government tax revenues of $100.
The process of developing local industries to manufacture goods to replace imports is known as
A. export favoritism. B. export promotion. C. import promotion. D. import substitution.