In the presence of external economies of scale, trade
A) may or may not improve welfare in both countries.
B) will unambiguously improves welfare in both countries.
C) will unambiguously worsens welfare in both countries.
D) will unambiguously worsen welfare in the exporting country and improve welfare in the importing country.
E) will unambiguously improve welfare in the exporting country and worsen welfare in the importing country.
A
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The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ________ decrease in the quantity demanded
A) 2 percent B) 5 percent C) 10 percent D) 50 percent
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. If the price of burger increases,
A) Max will buy less burger and more chicken. B) Max will buy less burger and the same quantity of chicken. C) Max will buy less of both meats. D) More information is needed to answer the question.
Marginal-cost pricing, which is used to regulate a natural monopoly, leads to zero economic profit
a. True b. False Indicate whether the statement is true or false
At a taxable income of $80,000 Adam's income tax is $18,400. When his taxable income rises to $90,000 his income tax is $21,000. Based on this information, Adam's marginal tax rate is _____________ percent and his new average tax rate is ____________ percent
A) 3.8; 23.0 B) 23; 26.0 C) 26; 23.3 D) 18; 24.0 E) 21; 23.3