If the autarky price of S were lower in country A than in country B, then if trade were allowed
A) A would likely export S to B.
B) A would likely import S from B.
C) neither country would want to trade.
D) None of the above.
A
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If the economy is at full employment:
A. the aggregate demand curve cannot shift to the right. B. government spending causes crowding in. C. Keynesians argue that any crowding-out effect is small. D. crowding out is complete.
Imperfect information is:
A. a failure of regulators to correct the equilibrium price and quantity to their efficient levels. B. an antitrust violation. C. the monopoly power gained from one seller having a secret production practice. D. a market failure that prevents consumers from making rational decisions.
Which of the following is NOT a reason why we see little international policy coordination?
A. The benefits of international policy coordination are likely to be small in most situations. B. Governments often have difficulty in delivering on their commitments as part of any international policy coordination. C. The interventions by the different governments according to the policy coordination are usually effective only in the very long run. D. The policy goals of different countries are often incompatible.
Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?
a. the effect of taxes on the prices of airline tickets, and the profitability of automobile-manufacturing firms b. the price of beef, and wage differences between genders c. how consumers maximize utility, and how prices are established in markets for agricultural products d. the percentage of the labor force that is out of work, and differences in average income from country to country