In the above figure, CBL is the cost of breaking the law. If it is illegal to buy and sell, then the quantity of the good bought and sold will be
A) 100.
B) 200.
C) 300.
D) 400.
A
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An increase in the foreign interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
A) right; appreciate B) right; depreciate C) left; appreciate D) left; depreciate
If a Canadian firm opens a production facility in the United States, the profits from this production facility received by the Canadian owners of the firm in exchange for the factors of production they supply will be included in the
A) gross domestic product of Canada. B) gross national product of the United States. C) gross national product of Canada. D) exports from Canada and imports to the United States.
Which of the following combinations would be on an aggregate demand curve with a spending growth rate of 6%?
What will be an ideal response?
Adverse selection is most likely to be a problem when:
A. the good being exchanged has negative externalities. B. there are public goods involved. C. one side of the market, either buyer or seller, has better information than the other side. D. the good being exchanged has free rider problems.