If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,
a. the country will be an exporter of the good.
b. the country will be an importer of the good.
c. the country will be neither an exporter nor an importer of the good.
d. Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the good, or neither.
A
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The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 400 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the deadweight loss due to the monopsony in the coal miners market?
A. $27,778 B. $13,889 C. $41,667 D. $21,667
The stock of unused goods held by a firm is called a(n):
a. depreciation. b. supplement. c. deadweight loss. d. excess capacity. e. inventory.
The short-run macro model is used most often to determine changes in
a. nominal output b. net output c. gross output d. financial output e. real output.
Brooke and Sandy both attend the same college and have the same expenses for tuition, books, and supplies. However, Brooke is a famous actress who could earn $2 million per year if she were not attending college whereas Sandy could earn $10,000 a year serving hamburgers if he were not attending college. It follows that the opportunity cost of attending college:
A. is greater for Brooke than for Sandy. B. for Brooke and Sandy cannot be compared. C. is greater for Sandy than for Brooke. D. is the same for both Brooke and Sandy.