Which of the following is true?
i. When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good.
ii. Compared to a no-trade situation, in a market with imports, consumer surplus is larger.
iii. Quotas raise the domestic price of imported goods.
A) only i
B) only ii
C) only iii
D) i and ii
E) ii and iii
E
You might also like to view...
The table above gives the total revenue and total cost for a perfectly competitive firm producing chocolate chip cookies. If the firm increases its output from 2 pounds of cookies to 3 pounds, the marginal revenue is ________ per pound of cookies
A) $11 B) $15 C) $30 D) $45
Medicare is a health care program
a. for poor and low income people b. administered through Social Security for retired workers starting at age 55 c. administered through Social Security for everyone over 65 years d. administered by state governments for people who are not covered by private health insurance e. administered by the federal government for people who are not covered by private insurance