If Freedonia changes its laws to allow international trade in software and the world price is higher than its domestic price, then it must be the case that
a. both consumer surplus and producer surplus increase.
b. consumer surplus increases and producer surplus decreases.
c. consumer surplus decreases and producer surplus increases.
d. both consumer surplus and producer surplus decrease.
c
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The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the number of people who eat hamburger meat?
A) Figure A B) Figure B C) Figure C D) Figures A and C
Which of the following is a leakage in an open economy?
a. Planned investment b. Imports c. Exports d. Government purchases e. Money
Figure 4-11 Refer to . On the Laffer curve shown, which of the following is true?
a. Tax revenue would increase if marginal tax rates were lowered from point C.
b. Tax revenue would decrease if marginal tax rates were lowered from point A.
c. Tax revenues are maximized at a tax rate corresponding to point B.
d. All of the above are true.
Specialization allows individuals to:
A. become more self-sufficient. B. focus their attention on one aspect of production. C. better understand the entire production process. D. broaden their skill base.