The figure below represents the domestic market for wheat in a small country. Imports of wheat are prohibited.
With an export subsidy of $20 per bushel, the production effect of the export subsidy amounts to
A. $200 million.
B. $2.2 billion.
C. $1 billion.
D. $300 million.
Answer: D
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A green pasture has turned barren due to overgrazing. This happened because the pasture was ________
A) excludable and rival B) non-excludable and non-rival C) excludable but non-rival D) non-excludable but rival
Network externalities create a push toward:
A. perfect competition. B. government deregulation. C. foreign competition. D. natural monopoly.
A firm reaches a break-even point (normal profit position) where:
A. marginal revenue cuts the horizontal axis. B. marginal cost intersects the average variable cost curve. C. total revenue equals total variable cost. D. total revenue and total cost are equal.
Other things equal, an increase in the Z factors shifts
A. the AS curve to the left. B. the AD curve to the right. C. the AS curve to the right. D. the AD curve to the left.