Suppose California and Wisconsin produce wine and cheese. Making a bottle of wine costs $3 in California, but $12 in Wisconsin. On the other hand, making a pound of cheese costs $4 in California, and $8 in Wisconsin. Under these conditions,
A. California should export wine and Wisconsin should export cheese.
B. California should export cheese and Wisconsin should export wine.
C. California should export both wine and cheese.
D. the two states cannot gain from trade with each other until a third state starts to export bottle openers.
A. California should export wine and Wisconsin should export cheese.
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Refer to Figure 12-10. The firm's short-run supply curve is its
A) marginal cost curve. B) marginal cost curve from d and above. C) marginal cost curve from b and above. D) marginal cost curve from c and above.
Screening is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks
The United States produces some of the electronic components used as inputs in its fighter planes. But due to the limited number of companies that produce these items, it imports these parts from Japan as well. There is concern that in the case of a prolonged war, these important imports may not be available. Fearing that the Air Force may be unable to fulfill its tasks in the case of a prolonged war, the specificity rule suggests that the United States should
A. ban the importation of these electronics parts to protect jobs in this industry. B. subsidize the domestic production of these electronics parts. C. impose tariffs on the imports of these electronic parts. D. impose high taxes on the production of these electronic parts.
What is the Nash equilibrium of the game?
a. Low, Low b. Low, High c. High, Low d. High, High