A low-productivity country will tend to avoid free trade with a high-productivity country. The low-productivity country will be exploited and lose industries in which it has a comparative advantage
a. True
b. False
B
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The U.S. government would never approve a proposed merger between two firms that could significantly increase the newly merged firm's market power even if the efficiency gains from the newly merged firm could make consumers better off
Indicate whether the statement is true or false
On a short-run macro model diagram, the impact of a decrease in government purchases (G) is illustrated by
a. a downward shift of the aggregate expenditure line by the full amount of the change in G b. an upward shift of the aggregate expenditure line followed by an equal downward shift of that line c. a leftward shift of the money supply curve d. a downward shift of the aggregate expenditure line by an amount less than the change in G e. the increase in real income
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
According to the graph shown, if a firm is producing at Q3:
A. average total costs exceed the market price. B. the firm should expand production. C. marginal revenue is greater than marginal cost. D. profits are being maximized.
If the number of people unemployed rose but the number of people employed and the adult population stayed the same, then the labor force participation rate would rise
a. True b. False Indicate whether the statement is true or false