Producer surplus is equal to the area
A) under the demand curve and above the supply curve.
B) above the supply curve and below the price line.
C) under the supply curve.
D) under the demand curve and above the price line.
B
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Increased international trade reduces the demand for a country's products that are produced more efficiently abroad (import-competing products). This increase in trade ________ the demand for workers in import-competing industries, and ________ their wages.
A. decreases; increases B. increases; increases C. decreases; decreases D. increases; decreases
How long is the long run?
What will be an ideal response?
If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of
a. both products to the right. b. both products to the left. c. grapefruit to the right. d. oranges to the left.
A basket of goods costs $800 in the U.S. In Belgium the basket of goods costs 640 euros and the exchange rate is .80 euros per U.S. dollar. In Japan the basket of goods costs 90,000 yen and the exchange rate is 90 yen per dollar. Which country has purchasing-power parity with the U.S.?
a. both Belgium and Japan b. Belgium but not Japan c. Japan but not Belgium d. neither Belgium nor Japan