When looking at the impact of a change in trade policy economists use consumer and producer surplus to look at the winners and losers. Free trade economists insist that
A. there are winners and losers, but that the loss to the losers is greater than the gain to the winners.
B. there are winners and losers, but that the gain to the winners is greater than the loss to the losers.
C. everyone loses.
D. no one loses.
Answer: B
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Suppose that a firm can produce its output at either of two plants. If profits are maximized, which of the following statements is true?
A) The marginal cost at the first plant must equal marginal revenue. B) The marginal cost at the second plant must equal marginal revenue. C) The marginal cost at the two plants must be equal. D) all of the above E) none of the above
From 1980 to 1987
a. foreigners were buying more assets from the United States than Americans were buying abroad. The United States was going into debt. b. Americans were buying more assets abroad than foreigners were buying from the United States. The United States was going into debt. c. foreigners were buying more assets from the United States than Americans were buying abroad. The United States was moving into surplus. d. Americans were buying more assets abroad than foreigners were buying from the United States. The United States was moving into surplus.
We can find the market supply for phones by:
A. adding all of the prices at which sellers are willing to sell phones. B. multiplying the number of sellers by the number of phones each is willing to sell. C. adding the number of phones buyers want to buy at each price level. D. adding the individual supply curves for phones.
If the demand for textbooks is inelastic, then a decrease in the price of textbooks will
a. increase total revenue of textbook sellers. b. decrease total revenue of textbook sellers. c. not change total revenue of textbook sellers. d. There is not enough information to answer this question.