Explain how trade with other countries is beneficial
Trade allows countries to specialize in what they do best, which increases total output.
You might also like to view...
The fixed expense on a fixed level of capital in the short run becomes a fixed cost for the firm in the long run.
Answer the following statement true (T) or false (F)
The excess burden or deadweight loss of a tax refers to the
a. increase in product price as a result of the tax. b. growth in government funded programs as a result of the revenue generated by the tax. c. loss of disposable income consumers suffer from the tax. d. reduction in gains from mutually beneficial exchanges that are eliminated as a result of the tax.
Suppose that a foreign monopolist supplies the entire domestic market (there is no domestic production). The home country then applies a $10 tariff on imports from the foreign monopolist. The home country will be better off if:
a. the terms-of-trade gain is less than the deadweight loss from the tariff. b. the price change is more than the deadweight loss of the tariff. c. the deadweight loss is more than the price change from the tariff. d. the terms-of-trade gain is more than the deadweight loss from the tariff.
Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. 
Figure 16.1 Refer to Figure 16.1. ________, 60 bags of fertilizer will be produced.
A. Absent government intervention B. To avoid shutting down C. With a price ceiling D. With government intervention