According to the graph shown, if this economy were to open to trade, domestic producers would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. transfer surplus in area DE to consumers.
B. transfer surplus in area DE to foreign producers.
C. lose surplus in area FG to deadweight loss.
D. lose surplus in area FG to foreign producers.
A. transfer surplus in area DE to consumers.
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The market demand curve for any good is:
a. independent of individuals' demand curves for the good. b. the vertical summation of individuals' demand curves. c. the horizontal summation of individuals' demand curves. d. derived from the firm's marginal cost of production.
If a decrease in the demand for corn leads to economic losses for corn farmers,
a. some existing corn farmers will exit the industry. b. the price of corn will remain low in the long run due to the economic losses. c. the suppliers of corn will suffer long-run economic losses. d. all of the above are correct.
The value of all outstanding federal government securities is called
A. the net internal debt. B. the fiscal deficit. C. the budget deficit. D. the public debt.
Deregulation of the railroad industry led to
A. Reconfigured routes and services. B. Increased operating costs. C. Decreased competition. D. Lower profits.