Refer to the above figure. The market supply and demand curves in a perfectly competitive market intersect at $4. Which of the graphs represent the situation for an individual firm?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
C
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Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of free trade in the United States are likely to favor
A) capital. B) labor. C) either capital or labor, depending on U.S. productivity. D) neither capital nor labor. E) Not enough information to tell.
In equilibrium, the price of a transferable emissions permit
A) is constrained to the amount the government first charged for it. B) equals the marginal cost of abatement for all firms. C) equals the marginal cost of abatement for the firm with the highest cost, and exceeds the marginal cost of abatement of other firms. D) equals the marginal cost of abatement for the firm with the lowest cost, and is less than the marginal cost of abatement of other firms. E) equals the marginal social cost of emissions.
If the output per acre of land triples, then the productivity of an acre of land
A. has been cut by two-thirds. B. has been cut by one-third. C. has tripled. D. has increased.
An import ban results in:
A. a decrease in the supply of the product. B. an increase in the product's price. C. a decrease in the quantity of the product bought and sold. D. All of these.