If losses are being made in a perfectly competitive industry, in the long run industry supply will ______ and market price will ________.
A. rise; rise
B. fall; fall
C. fall; rise
D. rise; fall
C. fall; rise
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What information does the government need to support an assertion that the 20-unit abatement standard is allocatively efficient?
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. The government sets an aggregate abatement standard (AST) of 20 units. The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 10 + 0.75(A1)2, Polluter 2: TAC2 = 5 + 0.5(A2)2, MAC1 = 1.5A1, MAC2 = A2.
The unemployment rate is the number of
A) people looking for work divided by the population. B) jobless individuals divided by the total labor force. C) jobless people looking for work divided by the population. D) jobless individuals looking for work divided by those employed and unemployed but actively looking.
In order to obtain an efficient allocation of resources worldwide
A) countries that have a lot of resources should ship resources to countries that do not have a lot of resources. B) countries that have a lot of resources should not trade since poorer countries cannot compete. C) each country should produce the good they have a comparative advantage in and then trade. D) no trade among countries should occur.
Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:
a. destroy the rice market in both countries. b. drive X to specialize in rice and Y to specialize in tuna. c. drive Y to specialize in rice and X to specialize in tuna. d. cause both X and Y to reject international specialization. e. result in lower total output of rice and tuna.