If the world price for good A is above the domestic price for good A without trade, then producer surplus will ________ and total economic surplus will ________ with trade.
A. increase; decrease
B. decrease; increase
C. increase; increase
D. decrease; decrease
Answer: C
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Farmer Ted owned a worn-out piece of farmland for growing cotton, which he had been unable to rent for years. Suddenly he was getting offers from cotton farmers to lease his land. What is the most likely explanation of this?
a. The price of cotton went down. b. The physical productivity of the land went up. c. Taxes on the land went up. d. The price of cotton went up.
Refer to the following payoff matrix:Player 1Player 2??Low QHigh Q?Low Q$10,$35$25,$30?High Q$30,$7$20,$6If the payoff matrix is a simultaneous-move production game, the Nash equilibrium is for:
A. player 1 to produce high output and player 2 to produce low output. B. both players to produce low output. C. player 1 to produce low output and player 2 to produce high output. D. both players to produce high output.
Data on labor-force flows show that
A) almost all separations are due to death. B) almost all separations are due to serious illness. C) almost all separations are quits. D) almost all separations are layoffs. E) none of the above
Which of the following is a part of the "employer mandate" provision of the Patient Protection and Affordable Care Act (ACA)?
A) Every firm with more than 3 full-time employees must offer health insurance to its employees and must automatically enroll them in the plan. B) Every resident of the United States must have health insurance that meets certain basic requirements. C) Firms with 50 or more full-time employees must offer health insurance or pay a $3,000 fine to the federal government for every employee who receives a tax credit from the federal government for obtaining health insurance through a health insurance marketplace. D) Small businesses with fewer than 50 employees are exempt from being required to participate in the program.