The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. If imported rice is banned, the loss in social welfare is
A) a + b + c + d + e.
B) a.
C) c + e.
D) i.
D
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The international capital market is
A) the place where you can rent earth moving equipment anywhere in the world. B) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future. C) the arrangement where banks build up their capital by borrowing from the Central Bank. D) the place where emerging economies accept capital invested by banks. E) exclusively concerned with the debt crisis that ended in the 1990s.
The purchase of Michelin Tire Company by General Motors is an example of a vertical merger
a. True b. False Indicate whether the statement is true or false
If an unregulated monopolist operates in a market, then: a. customers will pay higher prices than if the market were competitive
b. customers will purchase fewer units of output than if the market were competitive. c. society will not be allocating its resources efficiently. d. all of the above will occur.
Horizontal equity in taxation refers to the idea that people
a. in unequal conditions should be treated differently. b. in equal conditions should pay equal taxes. c. should be taxed according to their ability to pay. d. should receive government benefits according to how much they have been taxed.