When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of a particular good,
a. producer surplus increases and total surplus increases in the market for that good.
b. producer surplus increases and total surplus decreases in the market for that good.
c. producer surplus decreases and total surplus increases in the market for that good.
d. producer surplus decreases and total surplus decreases in the market for that good.
c
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Refer to Figure 5-2. The true marginal cost of the last unit produced is represented by the price
A) Pa. B) Pb. C) Pc. D) Pf.
A decrease in price:
A. causes a decrease in total revenue due to the quantity effect. B. causes an increase in total revenue due to the price effect. C. does not cause a quantity effect when demand is perfectly inelastic. D. does not change quantity demanded if demand is elastic.
An appreciation of the Norwegian kroner in relation to the U.S. dollar is most likely to cause:
a. an increase in the U.S. demand for Norwegian goods. b. an increase in the Norwegian demand for U.S. goods. c. an increase in the supply of U.S. goods to Norway. d. a decrease in the supply of Norwegian goods to the United States. e. no change in the demand or supply of goods for either country.
The Fair Labor Standards Act of 1938
A. Eliminated minimum wages created during World War I. B. Granted women the right to work in nonclerical occupations. C. Set a minimum wage of 25 cents per hour. D. Established maximum work hours per day.