In a competitive market, prices adjust until all consumers find themselves
A) maximizing utility.
B) on the contract curve.
C) happy with their original endowment.
D) with many opportunities to gain from additional exchange.
B
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What will be an ideal response?
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What will be an ideal response?
The real interest rate is defined as the:
a. actual interest rate. b. fixed-rate on consumer loans. c. nominal interest rate minus the inflation rate. d. expected interest rate minus the inflation rate.
If a country removed an import quota on cotton, then overall that country's
a. exports and imports would rise. b. exports would rise and imports would fall. c. exports would fall and imports would rise. d. exports and imports would fall.