Refer to the figure above. If A forms a customs union with B, the value of trade diversion will be
A) $0.
B) $10,000.
C) $20,000.
D) $40,000.
A
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The price of ________ in terms of ________ is referred to as the real exchange rate
A) foreign goods; foreign services B) domestic goods; the domestic currency C) domestic goods; foreign goods D) domestic goods; domestic services
The situation pictured in Figure 6.3
A) is one of increasing marginal returns to labor. B) is one of increasing marginal returns to capital. C) is not consistent with diminishing marginal product of labor or capital. D) shows constant returns to scale. E) shows diminishing marginal products of labor and capital.
If the absolute price elasticity of demand is equal to 1 in the short run, then in the long run, other things being equal, the absolute price elasticity of demand will be
A) less than one. B) less than zero. C) greater than one. D) equal to zero.
Refer to the information in Figure 16.5 below to answer the question(s) that follow.
?Figure 16.5Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.Refer to Figure 16.5. Before any tax on pollution is imposed, the total amount of pollution being emitted in this industry is ________ tons.
A. 50 B. 100 C. 150 D. 200