Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of beans increases to equal the world price of beans, then
a. that country becomes an exporter of beans.
b. that country has a comparative advantage in producing beans.
c. at the world price, the quantity of beans supplied in that country exceeds the quantity of beans demanded in that country.
d. All of the above are correct.
d
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If your real income in base year prices is $50,000, then if the CPI is 170, what is your nominal income?
A) $85,000.00 B) $29,411.76 C) $70,000.00 D) $50,000.00 E) $71,428.57
An example of a biomass fuel is
(a) coal. (b) nuclear fuel. (c) manure. (d) oil.
Designing your products with proprietary technology, is a way to
A) protect intellectual property. B) increase switching costs for your customers. C) grandfather in your products. D) decrease your marginal cost.
Which of the following represents a way that a government can help the private market to internalize an externality?
a. taxing goods that have negative externalities b. subsidizing goods that have positive externalities c. The government cannot improve upon the outcomes of private markets. d. Both a and b are correct.