The production possibilities frontier slopes downward and to the right because of limited resources

In the above figure, the deadweight loss due to the tax is

A) $1,000. B) $2,000. C) $4,000. D) $8,000.

Which of the following is NOT a likely result of intraindustry trade based on internal economies of scale?

A) Job creation at domestic firms entering international trade B) Lower prices for the domestic consumers of the product now being traded C) Increased sales and lower per unit costs for the firm doing the exporting D) Higher prices for the exported product