Suppose rice can be produced in China at a lower cost than in Thailand, while tuna can be produced in Thailand at a lower cost than in China. International competition will
a. destroy the rice market in both countries
b. drive China to specialize in rice and Thailand to specialize in tuna
c. drive Thailand to specialize in rice and China to specialize in tuna
d. cause both countries to reject international specialization
e. result in lower total output of rice and tuna
B
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A severe freeze has once again damaged the Florida orange crop. The impact on the market for oranges will be a leftward shift in
a. demand as consumers try to economize because of the shortage. b. both the supply and demand curves. c. the supply curve. d. the supply curve and a rightward shift in the demand curve, which will result in a higher price.
The Food Quality Protection Act of 1996
a. amended both TSCA and FIFRA b. gives particular attention to pesticide risks faced by infants and children c. establishes several health-based standards to control pesticides in foods d. none of the above
In the process of reducing pollutants in our environment, we are
A) achieving a cleaner environment at no real cost. B) causing higher levels of unemployment. C) reallocating resources in an inefficient manner. D) trading off less of other goods and services for a cleaner environment.
There is often a trade-off between
A) productive efficiency and allocative efficiency. B) limited and unlimited resources. C) voluntary and involuntary exchanges. D) economic efficiency and economic equity.