Perfectly competitive markets maximize the sum of producer and consumer surplus
a. True
b. False
A
You might also like to view...
A change in ________ creates a movement along the aggregate demand curve, while a change in ________ shifts the aggregate demand curve
A) expected profits; tax rates B) the price level; government expenditures C) foreign income; the foreign exchange rate D) real wealth; human capital
If the production possibilities curves of two countries have the same slope,
a. neither has a comparative advantage, and there are no gains from trade. b. although there is no comparative advantage, there are potential gains if there are differences in absolute advantage. c. neither has an absolute advantage, and there cannot be gains from trade. d. both have an absolute advantage, and can gain from trade.
When a country imposes a trade restriction, the real exchange rate of that country's currency appreciates
a. True b. False Indicate whether the statement is true or false
If the U.S. government's borrowing needs increase, in the bond market this would be seen as the:
A. bond demand curve shifting right. B. bond demand curve shifting left. C. bond supply curve shifting right. D. bond supply curve shifting left.