Refer to the figure above. Total welfare can be increased by ________
A) increasing output above Q1
B) reducing output below Q1
C) lowering the market price below P1
D) increasing the market price above P2
B
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Suppose that country X can produce 1,000 pounds of flour per hour, or catch 500 pounds of fish per hour. In contrast, country Y can produce 1,800 pounds of flour per hour, or catch 300 pounds of fish per hour. If both countries specialize in their comparative advantage and trade, by how much combined output of fish and flour per hour be greater than if there were no trade and the countries divide
an hour of time equally between each output? a. 200 pounds of flour and 200 pounds of fish. b. 400 pounds of flour and 100 pounds of fish. c. 50 pounds of flour and 50 pounds of fish. d. 160 pounds of flour and 200 pounds of fish.
Refer to the graph below. An effective minimum wage would be set
a. above We and would create a surplus of labor.
b. below We and would create a surplus of labor.
c. above We and would create a shortage of labor.
d. below We and would create a shortage of labor.