An industry is characterized by scale economies, and exists in two countries. Should these two countries engage in trade such that the combined market is supplied by one country's industry, then
A) consumers in both countries would have more varieties and lower prices.
B) consumers in both countries would have higher prices and fewer varieties.
C) consumers in the importing country only would have higher prices and fewer varieties.
D) consumers in the exporting country only would have higher prices and fewer varieties.
E) consumers in both countries would have fewer varieties at lower prices.
A
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A quota will reduce consumer welfare when
A) the quota is less than the amount purchased without the quota. B) the quota is greater than the amount purchased without the quota. C) the quota is on a good with high income elasticity. D) Quotas always reduce consumer welfare.
For the past several decades, union membership in the United States has been declining. What has been happening in the rest of the world?
A) Union membership has been increasing in almost every other country. B) In almost every other nation, union membership has held constant. C) In most cases, union membership in other nations has also been falling. D) We do not know because other nations do not keep these statistics.