When a nation removes restrictions on imported products we will see
A. an increase in consumer surplus and a decrease in producer surplus.
B. a decrease in consumer surplus and an increase in producer surplus.
C. an increase in consumer surplus and an increase in producer surplus.
D. a decrease in consumer surplus and an decrease in producer surplus.
Answer: A
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When Del Monte, an American company, purchases Mexican tomatoes, Del Monte pays for the tomatoes with
A) Mexican goods and services. B) euros. C) gold. D) Mexican pesos. E) Canadian dollars.
By comparing the marginal revenue and marginal cost from each unit produced, a firm in a competitive market can determine the profit-maximizing level of production
a. True b. False Indicate whether the statement is true or false
The rate at which a country can trade domestic products for imported products is its:
A) rate of production transformation. B) rate of market substitution. C) terms of trade. D) production possibilities curve.
The level of long-run aggregate supply is affected by all of the following except
A) changes in the price level. B) changes in the technology. C) changes in the capital stock. D) changes in the number of workers.