Let's assume Ben can produce 3 units of a material good (M) or 3 units of a spiritual good (S) in a day, while Cal can produce 1 M or 2 Ss in a day. Both Ben and Cal can potentially produce a larger combination of M and S
A) if Ben specializes in S and Cal in M and they exchange with one another.
B) if Ben specializes in M and Cal in S and they exchange with one another.
C) if Ben specializes in both goods and doesn't exchange with Cal.
D) only if Cal finds a way to also produce 3 M and 3 S per day.
B
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The cost of lobbying for an import quota in a perfectly competitive market
A) increases the welfare loss of the quota. B) decreases the deadweight loss of the quota. C) shifts the supply curve of the good to the left. D) increases the consumer surplus.
When motorcycles are taxed and sellers of motorcycles are required to pay the tax to the government,
a. the quantity of motorcycles bought and sold in the market is reduced. b. the price paid by buyers of motorcycles decreases. c. the demand for motorcycles decreases. d. there is a movement downward and to the right along the demand curve for motorcycles.