Who gains from exports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from exports?
What will be an ideal response?
Producers of the good being exported gain from exports. They gain because the price they receive rises. As a result, they produce more of the good. Consumers of the good being exported lose from exports. They lose because the price they pay rises. As a result, they buy less of the good. The overall economy gains because the gain to producers exceeds the loss to consumers.
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Which of the following is the best example of a monopolistically competitive industry?
A) land-based long distance telephone service B) wheat farming C) the local electricity producer D) manufacturing of shirts E) cable television
One way to solve the free-rider problem is:
A. have the government provide the good at a certain cost. B. make the good or service more excludable. C. tax those who truly value the good. D. tax everyone an equal amount for the good.
In a Nash equilibrium no player wants to change his or her strategy
Indicate whether the statement is true or false
A positive (non-zero) price for a good means there is a surplus of that good
a. True b. False Indicate whether the statement is true or false