Which of the following is true of international trade?
A) International trade reduces the total surplus enjoyed by an economy.
B) International trade benefits all participants equally.
C) International trade in services is not allowed.
D) International trade increases overall economic efficiency.
D
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Anticipating the decisions others will make in response to your decision while knowing the others are anticipating your response is known as
A) strategic interaction. B) the wait-and-see game. C) psychic intuition. D) best-response analysis.
Markets provide
A) information. B) prices. C) incentives. D) all of these choices.
Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion. The national income of this nation will be:
a. $236 billion. b. $249 billion. c. $251 billion. d. $279 billion. e. $290 billion.
Technological progress increases the efficiency of mass producing HDTV-capable television sets. At the same time, more cable and television networks begin broadcasting in HDTV format, increasing the appeal of HDTV-capable television sets. On the basis of this information, what can be said about conditions in the HDTV market? a. The equilibrium quantity and price of HDTV-capable sets will
increase. b. The equilibrium quantity of HDTV-capable sets will increase and price will decrease. c. The equilibrium quantity of HDTV-capable sets will increase and what happens to price is indeterminate. d. The equilibrium quantity of HDTV-capable sets will decrease and price will increase.