One reason why producers have an incentive to organize in favor of protection is because
A) producer gains are spread across so many firms that no one gets a large share of the benefits.
B) producer gains are relatively concentrated.
C) there is no real cost to the economy.
D) producer gains outweigh consumer losses.
E) it is a cheap way to keep their employees happy.
B
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If Brazil's gross revenue from coffee exports doubles from one year to the next even though the number of bags of coffee exported declines 50 percent,
A) individual Brazilian coffee producers are price searchers. B) individual Brazilian coffee producers have substantial market power. C) the demand for Brazilian coffee is most likely elastic. D) the demand for Brazilian coffee is most likely inelastic.
Suppose that the price level in Country A increase relative to the price level in other countries. In which of the following ways are Country A's imports and exports most likely to change?
a. increase; no change b. increase; decrease c. no change; decrease d. no change; increase e. decrease; increase