The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the wage required to hire the profit maximizing number of workers?

Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. The U.S. has a comparative advantage in producing

A) food. B) clothing. C) food and clothing. D) neither good.

If a society relies on competitive markets to allocate goods, then

A) an equitable distribution is assured. B) an equitable distribution is certain to not occur. C) the competitive equilibrium will be Pareto superior to any other. D) social welfare as measured by consumer surplus plus producer surplus will equal zero.