Zelzar has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. Which groups in Zelzar are better off as a result of the new free-trade policy?
a. producers of incense and consumers of steel
b. consumers of all three goods
c. consumers of incense and producers of rugs
d. producers of steel and consumers of incense
d
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Refer to the following graph. The principle of diminishing returns is illustrated by the
a. upward sloping portion of the MP curve.
b. downward sloping portion of the MP curve.
c. upward sloping portion of the AP curve.
d. downward sloping portion of the AP curve.
The U.S. transfer system takes funds from the rich and distributes them to the poor. This transfer has significantly impacted income equality in the U.S
Indicate whether the statement is true or false
If the nominal interest rate is 6 percent and the rate of inflation is 2 percent, then the real interest rate is
a. -4 percent. b. 3 percent. c. 4 percent. d. 8 percent.
When Mexico suffered from capital flight in 1994, U.S. demand for loanable funds
a. and U.S. net capital outflow rose. b. and U.S. net capital outflow fell. c. fell and U.S. net capital outflow rose. d. rose and U.S. net capital outflow fell.