A key component of the Keynesian model is that
A. prices are flexible.
B. wages are flexible.
C. people are not fooled by money illusion.
D. prices are sticky.
Answer: D
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If quota rights accrue to foreigners, then _____.
A) the domestic economy is better off with a quota than with a tariff B) the domestic economy is worse off with a quota than with a tariff C) consumer surplus and economic welfare increase D) production costs decrease E) part of the decrease in consumer surplus is redistributed to the domestic government
A skilled worker is an example of:
a. unproductive resources. b. land resources. c. labor resources. d. capital resources. e. both labor and capital resources.
Price controls on resources generally lead to surpluses
a. True b. False Indicate whether the statement is true or false
If in the long run, any government policy that increases exports
A) also increases imports. B) decreases imports. C) has no impact on imports. D) makes imports become negative.