A company in Panama pays for a U.S. architect to design a factory building. By itself this transaction
a. increases U.S. exports and so increases the U.S. trade balance.
b. increases U.S. exports and so decreases the U.S. trade balance.
c. increases U.S. imports and so increases the U.S. trade balance.
d. increases U.S. imports and so decreases the U.S. trade balance.
a
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Which of the following is a CORRECT statement?
A) Producer surplus is an external benefit. B) Consumer surplus is an external benefit. C) A government subsidy paid to a producer is an external benefit. D) None of the above statements are correct.
Assuming there are no externalities, if a firm is producing at an output level where the benefits to consumers are less than the cost to the suppliers to produce it, then price
A. is greater than marginal cost. B. is less than marginal revenue. C. equals marginal cost. D. is less than marginal cost.