Refer to the given diagram and assumptions. If migration is costless and unimpeded, business income will:
(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 in Betania but increase in Alphania.
B. increase in Betania but decrease in Alphania.
C. decrease in both Alphania and Betania.
D. increase in both Alphania and Betania.
B. increase in Betania but decrease in Alphania.
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The amount of interest owed on a loan of $40,000 after a year at an interest rate of 4 percent is:
A. $1,600. B. $41,600. C. $40,400. D. $160.
All of the following are arguments to have less antitrust enforcement except for
A. There is always a chance that new innovators will replace oligopoly firms. B. Companies become large because they are successful in satisfying consumer demand. C. Global competitors put pressure on U.S. oligopoly industries. D. Oligopolies can lead to less output and higher prices.
Why would candy companies in the United States dislike the U.S. trade barriers on imported sugar?
a. Barriers decrease the cost of production, making candy less expensive. b. Barriers decrease the cost of production, making candy more expensive. c. Barriers increase the cost of production, making candy more expensive. d. Barriers increase the cost of production, making candy less expensive.
Which of the following is a transfer payment?
a. The federal government's budget deficit b. Unemployment compensation payments c. Military spending d. Wages of government employees e. The excise tax on gasoline