The introduction of a tax in a perfectly competitive marketplace that is originally in equilibrium will lower total surplus.
Answer the following statement true (T) or false (F)
True
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Suppose the majority of the shares of Ford stock were sold to a Japanese firm. Assuming all else remains constant, this will
A) decrease net portfolio investment in the United States. B) increase foreign direct investment in the United States. C) increase the balance of the U.S. current account. D) create a capital outflow in the United States. E) increase the balance of the U.S. financial account.
Which of the following is closely associated with activists?
a. external shocks to the economy b. aggregate demand management c. policy changes that come follow fixed rules d. avoiding supply shocks
Often, candidates running for political office will speak in general terms instead of specific terms because voters agree more on __________ than __________
A) benefits; costs B) costs; benefits C) means; ends D) ends; means E) none of the above
What is the total welfare from trade as shown in Exhibit 2?
a. + a
b. + d
c. a + b + c + e + f
d. a + b + c + d + e + f