The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, how many microwaves will be imported or exported?
A. 3,000 exported
B. 1,000 imported
C. 2,000 exported
D. 2,000 imported
Answer: D
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A) a currency drain B) income C) a currency surplus D) wealth
All of the following lead to a difference in income EXCEPT
A) sales tax. B) discrimination. C) the age-earnings cycle. D) marginal productivity.
Which of these statements is not true of both external cost and external benefit situations? a. They both can lead to market failure
b. They both cause welfare costs. c. They both make it possible for government intervention to lead to more efficient results. d. All of the above are true.
If the general level of prices is higher than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?
a. a recession b. output less than the economy's long-run potential c. a sharp reduction in imports d. an unemployment rate that is less than the economy's natural rate of unemployment