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Which of the following is NOT a true statement regarding free trade?
a Every individual in a country gains short-term benefits from free trade.
b Free trade may stimulate economic growth through export sales.
c Free trade generally reduces the domestic prices of imports.
d Free trade promotes specialization and efficient production.
Artsy T-Shirts sells 100,000 shirts a year, priced at $14 each. The company can produce any number of shirts at a constant cost of $10 each. It is considering expanding its sales by lowering the price to $12. What minimum increase in sales would be n..
godzilla and macrosoft produce software and operating systems respectively both at marginal cost 10. each firm has
The market demand for a public good such as environmental quality is found as the horizontal sum of all the individual demands for that good. According to the Coase Theorem, assignment of property rights will permit bargaining that leads to an effici..
An airline's flight is about to take off. It has a few empty seats left aboard. If it lowers its prices, it can fill the remaining seats and fly at full capacity. What should be done?
The quantity of an input, such as machines or workers, which maximizes profit is the quantity for which
A high pressure pump at a methan gas (bio fuel) plant in memphis costs $30000 for installation and has an estimated life of 12 years. By the addition of a specialized piece of auxiliary equipment, an annual savings of $500 in operating expense for th..
Why is a vending machine, which requires payment for each snack purchased, used to sell snacks, while a newspaper can be sold out of a box that allows anyone to take more than one paper?
q.why cant all the balance of payments accounts be in surplus? what factors determine the demand for british pounds in
Derive and graph the import demand schedule for the economy. Suppose this economy is a small open economy and the world price of the good is $34. How many goods would be imported and home many goods? What is domestic production? What is domestic cons..
1. Due to the recession that lowered income, the market price of good X got lower. For good X, we assume that Qd(P) = 100 - P + Y/20, and Qs(P) = 2P - Y/20, where Y is the income, and P is the price of good X. Derive the equilibrium price P* in terms..
What will be the future worth of a series of 15 annual $1500 payments if the nominal annual interest rate is 7% and the interest is compounded quarterly?
Calculate the consumer surplus, producer surplus, government revenue and deadweight loss for taxes of $4, $8, $12 and $16 per unit sold. What tax maximizes government revenue?
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