In which of these industries would you expect the least elastic response from suppliers?
a. fast food
b. soft drink
c. road building
d. aircraft
e. Picasso paintings
E
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The largest International Monetary Fund quota subscription, denominated in Special Drawing Rights, is held by
A) the United States. B) Japan. C) China. D) Russia.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country's production possibilities curve, it is clear that:
A. Country A should specialize in cars and Country B should specialize in trucks, and both could benefit from trade. B. Country A should specialize in trucks and Country B should specialize in cars, and both will benefit from trade. C. Country A will not benefit from trade. D. Country B will lose by trading with Country A.
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy is operating under free trade, who would be in favor of a tariff?
A. Domestic producers B. Foreign governments. C. Foreign producers D. Domestic consumers
Figure 10-8
If the economy were operating at point a in , the real rate of interest would tend to
a.
decrease and move the economy toward point c.
b.
decrease and move the economy toward point b.
c.
increase and move the economy toward point c.
d.
increase and move the economy toward point b.