How do exports affect buyers' consumer surplus?
What will be an ideal response?
Consumer surplus decreases. It decreases because exports raise the price of the good being exported, so buyers purchase less of the good and hence their consumer surplus decreases.
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Which of the following has made the greatest contribution to advances in productivity in recent years?
A. Spending on research and development. B. Improvement in management. C. Improvements in the quality of labor. D. Increases in capital per worker.
Many economists challenged the idea of passive government involvement in the economy following the inflation of the 1970s and early 1980s, and the recessions of 1974-1975 and 1980-1982.
Answer the following statement true (T) or false (F)
Assume a perfectly competitive industry is in long-run equilibrium at a price of $150. If this industry is an increasing-cost industry and the demand for the product increases, long-run equilibrium will be reestablished at a price
A. of $150. B. less than $150. C. greater than $150. D. either greater than or less than $150 depending on the magnitude of the decrease in demand.
The money multiplier yielded by the deposit creation formula assumes that
a. banks hold no excess reserves. b. banks hold excess reserves. c. recipients of loans take some of the proceeds in cash. d. recipients of loans do not redeposit their funds in other banks.