Refer to the figure above. In free trade A will import
A) 700 units from country C.
B) 700 units from C and 600 units from B.
C) 600 units from C.
D) 600 units from C and 400 units from B.
C
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Carefully define the two categories of saving in the economy
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Which of the following is true of international reserve currencies?
a. They are used for international exchange of goods and services. b. They are used to settle international debt. c. They are used for international bookkeeping. d. They are held for government investment abroad. e. They are created for international stock market trading.
If the cross elasticity of demand coefficient for potato chips and pretzels equals 1.5: a. potato chips and pretzels must both be inferior goods. b. potato chips and pretzels must both be normal goods. c. potato chips and pretzels must be substitutes
d. potato chips and pretzels must be complements.
One condition for private bargaining to occur, according to the Coase theorem, is that there must be:
A. government creation of a market for externalities. B. government intervention to establish bargaining. C. many people affected and involved. D. clearly established property rights.