The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat
a. True
b. False
Indicate whether the statement is true or false
True
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Assume that Clara purchases a combination of products Y and Z such that, after she is done spending her limited income, MUy/Py = 25 and MUz/Pz= 15. Based on the equal marginal principle, Clara
A. is maximizing her total utility. B. should have purchased less Y and less Z. C. should have purchased more Y and less Z. D. should have purchased less Y and more Z.
If Bonnie can produce either 20 hats or 10 scarves in a month, and Phil can produce either 5 hats or 10 scarves in a month, then
A) Bonnie is more efficient at producing hats, compared to Phil. B) Bonnie is equally efficient at producing scarves, compared to Phil. C) both A and B above are true. D) none of the above are true.
Suppose the total market value of all final goods and services produced in economy X this year is $4 million. Of the $4 million worth of goods and services, $3 million is sold and $1 million is held in inventory. For this year, the GDP for economy X is
A) $4 million. B) $3 million. C) $1 million. D) $7 million. E) none of the above
Refer to the figure above. How many units of Good X will be demanded if the government sets a price ceiling of Pc on the good?
A) 0 units B) 10 units C) 25 units D) 35 units