If Both the MU and MC of Flower Pots Is

question 18

Multiple Choice

If both the MU and MC of flower pots is $1.50 and the MU and MC of coffee cups is $2, then economic efficiency would require

• A)increased production of flower pots.
• B)increased production of coffee cups.
• C)the price of coffee cups to exceed the price of flower pots.
• D)the price of flower pots to exceed the price of coffee cups.

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Definitions:

Import

The process of importing products or services from foreign countries for the purpose of selling them domestically.

Domestic

Pertaining to or occurring within a country’s borders, often in reference to products produced, services rendered, or economic activities.

Produce

To create, manufacture, or grow goods and services for sale or consumption.

Import Quotas

Limits set by a government on the amount or value of goods that can be imported into a country.