A country will realize no gains from trade if
A) pre-trade and free-trade relative prices are identical.
B) all countries employ the same technology.
C) it does not have an absolute advantage in at least one good.
D) its wage exceeds the world average.
E) pre-trade and free-trade relative prices are not identical.
A
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One problem with the utilitarian principle is that it ignores
A) increasing marginal costs. B) decreasing marginal benefits. C) the costs of making income transfers. D) poor people.
A game in which any gains within the group are exactly offset by equal losses by the end of the game is a
A) positive-sum game. B) zero-sum game. C) strategy. D) negative-sum game.
Both unemployment insurance and income taxes are examples of
a. economic cycle contributors b. macro consensus c. government regulation d. automatic stabilizers e. tax rates
The Gibson Paradox shows that:
a. Central banks face a paradox when they want to stimulate their economies because consumers may not spend the newly created money. b. When monetary policy is loose and expected inflation rises, the nominal interest rate rises rather than falls. c. When fiscal policy is loose (i.e., high government spending and falling tax rates), society as a whole is more willing (not less willing) to give up consumption today for consumption in the future. d. When expected inflation rises, nominal interest rates fall rather than rise. e. When expected inflation falls, government spending tends to increase, rather than decrease, as is frequently assumed.