Suppose the United States eliminates its tariff on ball bearings used in producing exports. Ball bearing prices in the United States would be expected to
A) increase, and the foreign demand for U.S. exports would increase.
B) decrease, and the foreign demand for U.S. exports would increase.
C) increase, and the foreign demand for U.S. exports would decrease.
D) decrease, and the foreign demand for U.S. exports would decrease.
E) decrease, and the foreign demand would be unchanged.
C
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Al’s Donuts produces about 600 dozen doughnuts daily. If flour prices increase 20 percent,
A. only marginal cost will shift up. B. only marginal cost and average total cost will shift up. C. marginal cost, average variable cost, and average total cost will shift up. D. marginal cost, average total cost, average variable cost, and average fixed cost will shift up.
Trade allows each country to take advantage of lower ___________ costs in the other country.
a. replacement b. opportunity c. marginal d. retail
If pollutants emitted by firms in the steel industry increase, but there is no increase in the costs borne by these firms, you could conclude that
a. pollution is not a serious problem in this industry. b. the consumers of steel are unwilling to bear the costs of pollution generated from steel production. c. pollution is an externality in this market, since producers and purchasers of steel do not bear the full costs of the pollution. d. pollution creates an external benefit rather than an external cost in this case.
The M2 money supply is about ________ times larger than the M1 money supply
A. 1.5 B. 4 C. 8 D. 13