Explain using welfare measures whether consumers prefer a single price monopoly or a perfect-price-discriminating monopoly
What will be an ideal response?
Consumers prefer a single price monopoly because they gain some consumer surplus. No consumer surplus exists with a perfect-price-discriminating monopoly.
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The United States imports shoes from third world countries. This means that if the U.S. economy were closed, the domestic price of goods would be ________ the world price of shoes.
A. greater than B. close to C. less than D. equal to
Worker mobility and transition aid to workers are two ways to offset some of the impacts of:
A. increase in labor demand. B. increases in the labor supply. C. the long-term increase in real wages. D. increasing wage inequality.
According to the World View excerpt that compares GDP figures for several nations, Russia's real GDP is approximately
A. More than that of Mexico. B. More than that of China. C. More than that of Germany. D. None of the choices are correct.
Which of the following statements is correct?
A. In a first-best world, imports would not cause import-competing firms to go out of business and workers in these industries to lose their jobs. B. In a first-best world, if rising import competition is driving domestic producers out of business, the government must intervene to protect the domestic firms. C. The most efficient policy to maintain production in import-competing industries is to impose barriers on imports. D. If we want to help workers who lose jobs when a domestic industry shrinks, the specificity rule suggests that the government should provide subsidies to those workers to retrain or to relocate to areas where jobs are available.