The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound once international trade occurs, the total exports of cherries from the United States to other nations equals
A) 200,000 pounds.
B) 400,000 pounds.
C) 600,000 pounds.
D) 800,000 pounds.
E) 0 pounds.
B
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Refer to Scenario 17.4. Moral hazard would be eliminated in this situation if
A) the insurer would always charge $5000. B) the insurer would always charge $10,000. C) the insurer could costlessly monitor whether a flood control system is in place, and adjust the premium upward if it is not. D) the insurer could costlessly monitor whether a flood control system is in place, and adjust the premium downward if it is not. E) the flood did not occur.
The major problem with common ownership is that too much of the commonly owned resource is consumed, and not enough is produced
a. True b. False Indicate whether the statement is true or false
The trade deficit is the mirror image of the required capital inflows. So why worry about these capital inflows?
a. Trade deficits automatically cause larger budget deficits. b. Before long, the Germans, Japanese, and other foreigners will own the United States and will be dictating policy to the U.S. government. c. These capital inflows create debts on which interest and principal payments will have to be made in the future. d. During the period of trade deficits, personal consumption must be reduced to build up wealth to repay the debt created.
Kachina is a senior majoring in graphic design at Awesome University (AU). While she has been attending college, Kachina started a computer consulting business to help senior citizens learn how to use their iPads. Kachina charges $25 per hour for her consulting services. She also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department
pays Kachina $20 per hour. If Kachina can work additional hours at either job, what is the opportunity cost if she spends one hour reading a novel? a. $20 b. $25 c. $100 d. $125