Based on Table 3.1, trade between the United States and Mexico will occur as long as the relative price of shoes is between
A) three computers and one computer.
B) three computers and two computers.
C) one-half computer and one-third computer.
D) six computers and three computers.
E) None of the above.
C
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Suppose that Hannah spends $3 to buy five biscuits. The marginal utility of the fifth biscuit is valued at $0.60; total utility of the five biscuits is valued at $4.20 . Given this information, what do we know about consumer surplus?
a. It is impossible to determine consumer surplus without knowing the marginal utility of the first four biscuits. b. It is impossible to determine consumer surplus without knowing the price per biscuit. c. It is impossible to determine consumer surplus without knowing the price Hannah was willing to pay for the first five biscuits. d. Consumer surplus is equal to $2.40. e. Consumer surplus is equal to $1.20.
U.S. government policy to stimulate research and development activities would be most likely to succeed if it involved
a. interest rate policy. b. corporate tax policy. c. personal income tax policy. d. payroll tax policy.