When the nation of Isoland opens up its steel market to international trade, that change
a. creates winners and losers, regardless of whether Isoland ends up exporting or importing steel.
b. results in a decrease in total surplus, regardless of whether Isoland ends up exporting or importing steel.
c. creates winners, but no losers, if Isoland ends up exporting steel.
d. creates losers, but no winners, if Isoland ends up importing steel.
a
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According to the Application, the argument that the broken window is good for society
A) works in the Keynesian world when the economy is operating below full employment. B) never works in the Keynesian or classical worlds regardless of where the economy is operating relative to full employment. C) works in the classical world when the economy is operating at full employment. D) works in both the Keynesian and classical worlds regardless of where the economy is operating relative to full employment.
According to the survivor principle
A) firms will get taken over by their larger rivals over time. B) only firms that maximize profits survive in highly competitive markets. C) managers only work hard if they are threatened with their survival at the firm. D) eventually all firms merge to become one large monopoly.
If a Pigovian tax is levied on producers, the supply curve will shift:
A. straight up, decreasing quantity. B. straight down, decreasing quantity. C. straight up, increasing quantity. D. straight down, increasing quantity.
The consumer's optimum is where
a. MUx/MUy = Py/Px. b. MUx/Py = MUy/Px. c. MUx/MUy = Px/Py. d. None of the above is correct.