When two countries specialize and trade:
A. both can enjoy more output than either could produce on its own.
B. they can have consumption possibilities beyond their production possibilities.
C. surplus can be gained by both countries.
D. All of these are true.
D. All of these are true.
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According to economists who support passive policymaking
A) expansionary policies can reduce unemployment without increasing the price level. B) policies that attempt to exploit the Phillips curve trade-off will eventually become ineffective for reducing unemployment. C) there is no difference between the effect of an anticipated change in aggregate demand and the effect of an unanticipated change in aggregate demand of an identical amount. D) workers always consider a change in nominal wages to be a change in real wages.
If marginal utility from consuming an extra unit of a good is positive, then the consumer's total utility must increase as more of the good is consumed
a. True b. False
In a typical graph for a purely competitive firm, at the point where the total cost and total revenue curves intersect, the firm:
A. Earns some economic profit
B. Suffers some economic loss
C. Earns some normal profit
D. Suffers some accounting loss
Which statement is correct?
A. In the short run the pure monopolist will maximize total profits by producing at that level of output where the difference between price and average total cost is greatest B. In the short run the pure monopolist will charge the highest price it can get for its product C. Because of its ability to set its own price, the pure monopolist can increase price and increase its volume of sales simultaneously D. Pure monopolists do not always realize positive profits, sometimes they suffer losses