Assume that the U.S. can produce either 10 million cell phones or 20 million picture frames and that Canada can produce either 2 million cell phones or 6 million picture frames. Based on this information, which of the following is true?
a. Both countries could benefit if the U.S. traded cell phones to Canada for picture frames.
b. Both countries could benefit if the U.S. traded picture frames
to Canada for cell phones.
c. Canada could gain from trade but the U.S. could not.
d. The U.S. could gain from trade but Canada could not.
a
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The government unit that wants to achieve "revenue enhancement" will find it considerably more favorable to enact an excise tax on goods whose demand is
A) highly elastic. B) relatively elastic. C) highly inelastic. D) unitary elastic.
Sellers in a perfectly competitive market make special arrangements to deal with particular customers and stand to lose value if their relationship with those customers ends
Indicate whether the statement is true or false
According to the text, there is no such thing as a free lunch because
A. The producer must charge something to cover the cost of production. B. The government must raise taxes to pay for the lunches. C. No one would pay for lunch anymore if they could get it for free. D. Resources used to produce the lunch could be used to produce other goods and services.
Which statement is false?
A. The retail market for gasoline is local. B. A market must be at a specific location. C. The market for automobiles is regional. D. The market for some goods and services may be international.