The argument that strategic planning is not likely to be practical due to insufficient information means that
A) because of trade secrets, the government does not know true cost relationships in any given industry.
B) if the government had all the relevant information in a given industry then it could decide whether a subsidy would enhance the public's welfare.
C) even if the government had all the relevant information in a given industry, it still could not decide whether a subsidy would enhance the public's welfare.
D) due to recent cuts in the Department of the Census' sampling budgets, industry surveys are no longer reliable, so that there is no way to determine if a subsidy is in the public's interest.
E) the government would need to employ its intelligence agencies in order to gain a complete understanding of the market.
C
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The above figure shows the U.S. market for 1 carat diamonds. Area A is the
A) increase in producer surplus due to the import quota. B) importers' profit from the import quota. C) decrease in consumer surplus due to the import quota. D) deadweight loss from the import quota. E) gain in total surplus due to the import quota.
Figure 7-1
. In Figure 7-1, which graph best represents total physical product with diminishing returns?
A. 1 B. 2 C. 3 D. 4
Which of the following examples would be shown on a market supply curve?
a. A cotton grower in Mississippi would supply 400 pounds of cotton at $3 per pound. b. Mark’s farm would supply 500 pound of cotton per year at $5 per pound. c. FDK, Inc. would supply 1,000 pounds of cotton per year at $5 per pound. d. All U.S. cotton growers would supply 50 billion pounds of cotton per year at $6 per pound.
If a producer is willing to receive at least $3 for a pen that she manufactures but she actually receives $8 for it. The producer surplus of the pen for that producer is
A. $2. B. $5. C. -$5. D. $9.