Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations, the United States lifted quotas limiting the import of tomatoes from Mexico. Some firms in Florida, in the face of this new competition, had to close their farms and their workers lost their jobs. Many of the workers could not find new jobs right away. What type of unemployment describes the workers' situation?
A. Cyclical unemployment
B. Structural unemployment
C. Full unemployment
D. Target unemployment
Answer: B
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Who bears the burden of an excise tax if demand is perfectly inelastic; if supply is perfectly inelastic? Use graphs in your explanation
If the index of intra-industry trade for an industry is zero, then:
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If a consumer is initially at an optimum, and then the price of Y decreases, then
A) MUX/PX > MUY/PY. B) MUX/PX < MUY/PY. C) MUX/PX = MUY/PY. D) MUX/MUY < PY/PX.