This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, domestic producers would:
A. transfer surplus in area DE to consumers.
B. lose surplus in area FG to foreign producers.
C. transfer surplus in area DE to foreign producers.
D. lose surplus in area FG to deadweight loss.
Answer: A
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The exchange rate is the price at which the ________ of one country exchanges for the ________ of another country
A) currency; goods B) goods; goods C) currency; currency D) currency; financial instruments
Refer to Figure 2-1. ________ is (are) unattainable with current resources
A) Point A B) Point B C) Point C D) Points A and C
Which of the following statements is true about the Marxist's argument in favor of an egalitarian income distribution? a. Aside from the very rich, people are disposed toward income equality. b. Private property originates from theft and it is this property that creates unequal distribution of income
c. Government (welfare) and private charity doesn't work. d. Human beings are imperfect, and it is the unequal distribution of income that reflects this imperfection. e. Although income equality does not support the most efficient use of economy's resources, it's worth it anyway.
Based on the graphic showing the Lorenz Curve, at point d’, what percentage of total income did the highest 20 percent of earners receive in 2017?
a. 13.0
b. 28.1
c. 48.9
d. 51.2