Eco 365 final exam guide

25) From the point of view of consumer and producer surplus, what problem may be created when a country subsidizes the cost of energy to consumers to help alleviate the burden of higher energy costs?

26) Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?

27) The U.S. textile industry is relatively small because the US imports most of its clothing. A clear result of the importation of clothing is 28) Countries can expect to gain from international trade as long as they 29) Which of the following is an example of the law of one price?

30) The fact that U.S. managers' salaries are substantially greater than those of comparable managers in Japan may be related to