When an outcome is ________, social surplus is ________
A) Pareto inefficient; maximized
B) Pareto efficient; maximized
C) Pareto efficient; minimized
D) Pareto inefficient; minimized
B
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The selling of a product for a price below its cost of production is called
A) operating at a loss. B) unfair competition. C) fair competition. D) dumping.
Refer to Figure 24-4. Given the economy is at point A in year 1, what will happen to the price level in year 2?
A) It will remain constant. B) It will fall. C) It will rise. D) not enough information to answer the question
The effect of an export tariff on a large country is to ________ the terms of trade
A) always improve B) sometimes improve C) leave unchanged D) sometimes worsen E) always worsen
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Two possible consumption bundles that Country B could produce are:
A. (7,200 bananas, 2,400 tomatoes) and (3,600 bananas, 1,200 tomatoes) B. (7,200 bananas, 0 tomatoes) and (4,000 bananas, 1,200 tomatoes) C. (3,600 bananas, 1,200 tomatoes) and (1,800 bananas, 1,600 tomatoes) D. (1,800 bananas, 1,800 tomatoes) and (900 bananas, 2,200 tomatoes)