Suppose the lowest-wage state in the United States is West Virginia and the highest-wage state is New York. Which of the following would be true?
a. If New York trades with West Virginia, consumers in New York will be worse off.
b. If New York trades with West Virginia, wages in New York will fall until they equal the wages in West Virginia.
c. New York would be better off if its state government imposed restrictions on the importation of goods made in West Virginia.
d. Both New York and West Virginia will be better off if they are allowed to trade freely.
D
You might also like to view...
Refer to Figure 4-9. What is the size of the unit tax?
A) $8 B) $5 C) $3 D) cannot be determined from the figure
An increase in interest rates might be an example of a ________ policy for the purpose of ________
A) monetary; reducing inflation B) monetary; lowering unemployment C) monetary; increasing the quantity of money D) fiscal; reducing inflation E) fiscal; lowering unemployment
The small city of Pleasantville is considering building a public swimming pool that costs $1,000. Each resident's marginal benefit of the swimming pool is shown below. It takes a 4/5 majority to pass any tax measure, and all residents must vote.VoterMarginal BenefitKyle$420Dylan$360Fran$350Ronnie$190Sam$170 If Fran proposes that the city build the pool and finance it with a $200 tax on each resident, then ________ residents will vote in favor of the proposal and ________ will vote against, so the proposal will ________.
A. 4; 1; pass B. 5; 1; pass C. 3; 2; fail D. 2; 3; fail
Which of the following is closest to a perfectly competitive market?
A) the pizza market B) the market for breakfast cereal C) the market for corn D) the market for automobiles