An international externality
a. refers to a spillover effect that results exclusively from international trade barriers
b. arises from transboundary pollution
c. can be modeled as the MEC of production when it affects more than one nation
d. all of the above
e. (b) and (c) only
e. (b) and (c) only
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The above figure shows a labor market with a minimum wage of $8 an hour. The value of the resources workers are willing to use in their job search equals the distance between point ________ and point ________
A) a; d B) a; b C) b; c D) a; c E) c; d
Refer to the figure above. When the supply curve of flash drives is S2 and the demand curve of flash drives is D, what is the surplus in the market when the price is $7?
A) 0 units B) 10 units C) 20 units D) 40 units
A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because of:
a. diseconomies of scale. b. economies of scale. c. diminishing returns to a fixed factor of production. d. the principal agent problem is generally less severe for larger firms.
If the price of inputs rises and foreign income rises:
a. Price index rises, and the change in real GDP is uncertain. b. Price index falls, and real GDP rises. c. Price index falls, and real GDP falls. d. Price index falls, and the change in real GDP is uncertain. e. The change in price index is uncertain, and real GDP rises.