Refer to the given diagram and assumptions. We would expect a flow of remittances from migrants to:
(1) The demand for labor in Alphania and Betania are as shown by D A and D B ,
respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries.
A. decrease the national income loss in Betania.
B. increase the national income gain in Betania.
C. decrease the national income loss in Alphania.
D. decrease the national income gains in both countries.
C. decrease the national income loss in Alphania.
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Answer the following statement(s) true (T) or false (F)
1. A Pigou tax forces car manufacturers to internalize the cost of pollution. 2. Cap and Trade is so named because the government puts a “cap” on the amount of exports that domestic firms are allowed to “trade” with foreign nations. 3. A Cap and Trade system is more prone to error than a Pigou tax. 4. Pigou taxes are unnecessary in the presence of transaction costs. 5. Pigovian analysis indicates that a subsidy should be awarded when economic activity creates social benefits.
Sherri lives in Canada and is considering buying a new sofa. If the price level in Canada falls and the price level in the United States does not change, Canadian manufactured sofas are relatively
A) less expensive, so Sherri will likely purchase a U.S. manufactured sofa. B) less expensive, so Sherri will likely purchase a Canadian manufactured sofa. C) more expensive, so Sherri will likely purchase a U.S. manufactured sofa. D) more expensive, so Sherri will likely purchase a Canadian manufactured sofa. E) Both answers B and D could be correct depending on whether U.S. manufactured sofas were initially more expensive or less expensive than Canadian sofas.
Which of the following is the best example of scarcity?
A) The Talking Teddy is a surprise holiday hit, resulting in long lines of consumers trying to purchase the limited number of available Teddies. B) Fred only gets a 10-hour lunch break and each day must decide between working out at the gym or socializing with his colleagues. C) The local market's buy-one-get-one-free sale on strawberries results in more people wanting the berries than producers are able and willing to supply. D) Pokemon Go is the most popular cell-phone app that can be downloaded free from an app store.
Firms have ________ over their ________ costs in the short run.
A. no control; fixed B. control; overhead C. no control; variable D. control; fixed