If Country A opens up their corn market to trade with the rest of the world and the global price of corn is higher than the equilibrium price of corn in Country A, then Country A will ________ corn, which will ________ consumer surplus, ________
producer surplus, and ________ total surplus. A) import; increase; decrease; increase
B) import; decrease; increase; increase
C) export; increase; decrease; increase
D) export; decrease; increase; increase
E) export; decrease; increase; decrease
D
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Refer to Figure 14.3. To maximize economic rent, the labor union will agree to wage rate:
A) W0. B) W1. C) W2. D) W3. E) none of the above
Suppose Julia and Zach are the only consumers of milk. Julia's demand for milk is defined as QdJulia = 12 - 3P at prices below $4 and zero for prices above $4. Zach's demand for milk is defined as QdZach = 10 - 2P at prices below $5 and zero for prices above $5. In this case, the market demand curve for milk is:
A. upward sloping. B. a downward sloping straight line. C. kinked at a quantity of 2 units. D. kinked at a quantity of 1 unit.
Which of the following would lead to a rightward movement along the aggregate expenditure line rather than a shift of the line itself?
a. A reduction of the marginal propensity to consume b. A decrease in income of $100 billion c. An increase in income of $50 billion d. An increase in the interest rate e. A $50 billion decrease in autonomous consumption spending
Which of the following is NOT a factor of production?
A) land B) labor C) a product D) entrepreneurship