Because trade raises the amount that an economy can produce by letting firms and workers play to their comparative advantage, trade will also cause
a. the average level of wages in an economy to fall.
b. the average level of wages in an economy to rise.
c. the average number of jobs in an economy to rise.
d. the average number of jobs in an economy to fall.
b. the average level of wages in an economy to rise.
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Real-world applications of deposit-refund systems include
a. programs implemented through state bottle bills b. initiatives aimed at proper disposal of lead-acid batteries c. programs that create incentives to return scrapped vehicles d. all of the above e. none of the above
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
A horizontal merger
A) results in a trust (for example, the Standard Oil Company). B) is a merger between firms in the same industry. C) is a merger between firms at different stages of production of a good. D) was illegal in the United States until the Federal Trade Commission Act was passed by Congress in 1914.
As the price of milk increases, what happens at the original equilibrium in the market for cereal that signals market participants that the original equilibrium must change? (Milk and cereal are complements.)
A) A surplus is created by an increase in supply. B) A surplus is created by a decrease in demand. C) A shortage is created by an increase in demand. D) A shortage is created by a decrease in supply.