What factors do some who promote the profitability of elaborate trading strategies leave out?
A) the effect of trading costs and taxes
B) the difficulty of calculating the return on investment
C) ignoring the effect of dividends
D) not accounting for both capital gains and dividends
A
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Firms believe that the current economic downturn will be long-lasting and have decided to hold very little excess labor. The government reports that the unemployment rate is 12.5%. The government has decided to stimulate the economy by increasing government spending. In this situation the multiplier is likely to be
A. zero. B. small. C. negative. D. large.
Refer to the information provided in Figure 7.3 below to answer the question(s) that follow. 
Figure 7.3Refer to Figure 7.3. The average product with two workers is ________ yards raked.
A. 4 B. 13.5 C. 14 D. 27
Assume the market is in equilibrium in the graph shown at demand D and supply S1 (and a quantity of 5). If the supply curve shifts to S2, and a new equilibrium is reached (at a quantity of 7), which of the following is true?
A. Consumer surplus increases by $9. B. Consumer surplus decreases by $5. C. Consumer surplus increases by $5. D. Consumer surplus decreases by $9.
Free trade benefits the nation as a whole but may hurt specific industries and workers.
Answer the following statement true (T) or false (F)