The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 81

Multiple Choice

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-According to empirical observations, the cost of restricting international trade in the U.S. is much greater than the benefits generated from restriction. In the light of the above observation, which of the following statements is true?

• A)Domestic producers end up earning lower profits than what they would earn without trade restrictions.
• B)Consumers end up paying much more for the goods they buy in order to subsidize the relatively inefficient domestic producer.
• C)U.S. GDP would be over $14 billion higher with import restrictions than without restrictions.
• D)Protection of the U.S. textile and sugar industries means that all consumers pay a lower price for clothing and sugar.
• E)Protection of the domestic industries enable the producers to charge lower prices for their products.

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Definitions:

Error Term

In statistical modeling, it represents the difference between observed values and those predicted by a model.

Simple Regression

a technique that estimates the relationship between a dependent variable and a single independent variable using a straight line.

Intercept

The point where a line, curve, or surface intersects a coordinate axis; often used in the context of the y-intercept of a line in a graph.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the change in the y-variable to the change in the x-variable.