When a nation exports a good, its total surplus ________, and when it imports a good, its total surplus ________
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; does not change
A
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The multiplier measures the
A) number of steps it takes to move from one equilibrium to another. B) rise in saving resulting from a rise in income. C) marginal propensity to invest. D) rise in equilibrium GDP resulting from a one dollar rise in planned autonomous expenditures.
A stock whose rate of return fluctuates less than the rate of return of a market portfolio will have a beta that equals
A) 1. B) less than 1. C) more than 1. D) Either A or C above
The price elasticity of demand for a rental home in Luxury Resorts in the summer is 1.40 and is 2.60 in the spring. If Luxury Resorts faces a constant marginal cost of $600 per home rental, what is the profit-maximizing off-peak load price to charge in the spring?
A) $975 B) $2,100 C) $575 D) $850
If the benefits of X = $100 and the price of X = $50, then
A. you should not buy X. B. you will be indifferent between buying X and keeping your money. C. $100 is the reservation price. D. $0 is the reservation price.