Refer to the figure above. Domestic producers of this product in A would most prefer
A) a customs union with C.
B) a customs union with B.
C) a free trade agreement with both B and C.
D) no agreement with either country.
D
You might also like to view...
The classical growth theory asserts that
A) population growth leads to more growth in technology. B) population growth will lead to people earning only a subsistence level of income. C) economic growth will continue indefinitely. D) economic growth and population growth complement each other. E) population growth increases a nation's economic growth.
If there is a negative externality, and the market output is 100 units more than the socially optimal output, then it follows that
A. the external costs associated with the negative externality are greater than the marginal private costs. B. the external costs associated with the negative externality are less than the marginal private costs. C. there is market failure. D. any tax imposed on the production of the output will bring about the socially optimal output. E. none of the above
Nominal GDP is equal to real GDP multiplied by the GDP deflator
Indicate whether the statement is true or false
The monopoly producer
A. sets MU equal to P. B. sets MR = MC. C. has MC > MU. D. sets MR = P.