A government subsidy is typically used
A) to correct a negative externality.
B) to provide a government-inhibited good.
C) to reduce inflation.
D) to correct a positive externality.
D
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Adam Smith
A) is responsible for refining the model of supply and demand. B) is the author of this text. C) is considered the founder of economics. D) introduced the concept of ceteris paribus to the discussion of supply and demand.
An increase in income shifts indifference curves outward.
Answer the following statement true (T) or false (F)
In a given year, the value of U.S. exports and imports ________
A) is equal to the value of U.S. foreign exchange transactions B) is a relatively large fraction of U.S. foreign exchange transactions C) is a relatively small fraction of U.S. foreign exchange transactions D) does not involve a foreign exchange transaction
Intra-industry trade between similar countries produces economic gains because it allows workers and firms to learn and _________ on particular products.
a. innovate b. coordinate c. disseminate d. communicate