Welfare economics explains which of the following in the market for televisions?
a. The government sets the price of televisions; firms respond to the price by producing a specific level of output.
b. The government sets the quantity of televisions; firms respond to the quantity by charging a specific price.
c. The market equilibrium price for televisions maximizes the total welfare of television buyers and sellers.
d. The market equilibrium price for televisions maximizes consumer welfare and minimizes producer profit.
c
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Among the United States, Canada, Russia, India, and the United Kingdom, the country with the highest average income per person is
A) the United Kingdom. B) India. C) Canada. D) Russia. E) the United States.
Suppose a U.S. importer purchases "Mexican Oaxaca" cheese for $500 . If the present exchange rate is Mexican peso (MXP) 10 per U.S. dollar, and the MXP appreciates 10 percent against the U.S. dollar between the date of purchase and the date of payment, then the peso value of the invoice when payment is due is:
a. MXP 500. b. MXP 550. c. MXP 4,500. d. MXP 5,500. e. MXP 4,450.