In the market for apples in a certain country, consumer surplus increases and total surplus increases when that country
a. abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of apples.
b. abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of apples.
c. abandons a free-trade policy, adopts a no-trade policy, and becomes an importer of apples.
d. abandons a free-trade policy, adopts a no-trade policy, and becomes an exporter of apples.
a
You might also like to view...
Equilibrium expenditure is
A) the amount of aggregate expenditure at which aggregate planned expenditure exceeds real GDP. B) the amount of aggregate expenditure at which aggregate planned expenditure equals real GDP. C) when unplanned inventory change is positive. D) when unplanned inventory change is zero or negative. E) the amount of aggregate expenditure at which aggregate planned expenditure is less than real GDP.
Collusion is:
A. easy to maintain since firms always have an incentive to renege. B. difficult to maintain since firms rarely agree on the terms. C. easy to maintain since firms face similar cost curves. D. difficult to maintain since firms always have an incentive to renege.
If the units of variable input in a production process are 1, 2, 3, 4, and 5, and the corresponding total outputs are 30, 34, 37, 39, and 40, respectively. The marginal product of the fourth unit is:
a. 2. b. 1. c. 37. d. 39.
You overhear a businessman say: "We want to be big because there are economies associated with bigness." What he means is that
A. total fixed cost decreases as more is produced. B. total cost decreases as more is produced. C. marginal cost decreases as more is produced. D. long-run average cost decreases as more is produced.