Mutually beneficial trade is possible when the terms of trade are
A. between the seller's and buyer's opportunity cost.
B. above the seller's opportunity cost and above the buyer's opportunity cost.
C. between the seller's and buyer's general behavior.
D. below the seller's opportunity cost and above the buyer's opportunity cost.
Answer: A
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The price elasticity of demand for new cars is 1.2. Hence, a 10 percent price increase will
A) decrease the quantity of new cars demanded by 1.2 percent. B) increase consumer expenditure on new cars by 1.2 percent. C) decrease the quantity of new cars demanded by 12 percent. D) increase consumer expenditure on new cars by 12 percent.
Restaurant meals are an example of a ________ good and clothing is an example of a ________ good. The pattern of interregional trade is determined primarily by ________
A) nontraded; traded; external economies. B) traded; nontraded; internal economies C) nondurable; durable; natural resource D) durable; nondurable; natural resources E) consumer; style; population
What is one result of the Medicare subsidy?
A. The elderly population in the United States receives a lower quality of medical care than what is provided for the elderly population in other countries. B. Patients may elect to have some treatments that are of low value to them but that are costly to provide. C. The health care industry is more efficient than it otherwise would be. D. The number of physicians in the United States has declined.
The velocity of money is defined as
A) the average number of times each dollar is used to purchase goods and services. B) . C) the total number of times each dollar is used to purchase goods and services. D) P × Y.