Refer to the figure above. Which of the following methods is the best to compensate the losers from opening Lithasia to international trade?
A) Sellers in Lithasia could be taxed and the revenue could be used to compensate buyers.
B) Buyers in Lithasia could be taxed and the revenue could be used to compensate sellers.
C) Both buyers and sellers could be taxed and the revenue could be retained by the government.
D) The sellers in Lithasia could sell the pens at a price above the equilibrium price in the domestic market.
B
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Suppose you eat two hamburgers for lunch. The marginal benefit of the first burger is ________ of the second burger
A) larger than the marginal benefit B) not related to the marginal benefit C) smaller than the marginal benefit D) equal to the marginal cost and the marginal benefit E) equal to the marginal benefit
Which of the following does not aid the process of globalization?
a. Lower transportation costs b. Cheaper telecommunication c. Discrimination of workers based on age d. International agreements that encourage trade