In terms of efficiency, trade diversion is a _____ desirable outcome of a regional free-trade agreement, because trade is diverted from the ___________ producer to the __________ producer .
a. more; high-cost; low-cost
b. more; less deserving; more deserving
c. less; low-cost; high-cost
d. less; foreign; domestic
Ans: c. less; low-cost; high-cost
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All of the following explain the impact lag except the time between
A) a change in the money supply and a change in interest rates. B) a change in interest rates and a change in investment. C) a change in investment and the change in GDP. D) a change in the economy and the use of a tool of monetary policy.
Mary Ann and Don provide catering services in a perfectly competitive market. When they started in business, the going rate was $50 per person per meal. After the price increased to $60, they became willing to supply more meals. Their response to the price change is shown by
a. a rightward shift of the market supply curve b. a leftward shift of the market supply curve c. movement up along their firm's marginal cost curve d. movement down along their firm's marginal cost curve e. a rightward shift in their demand for jobs
Increased global competition is one reason why unionization has become more popular.
Answer the following statement true (T) or false (F)
A change in the reserve requirement changes
A) the monetary base. B) the money multiplier. C) the discount rate. D) all of the above E) none of the above