International trade does all the following except
a. allow a country to specialize in producing certain goods and services
b. reduce world output
c. increase world output
d. allow a country's consumption possibilities frontier to lie outside its production possibilities frontier
e. allow a country to move to a higher consumption possibilities frontier
Answer: b. Reduce world output
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Which of the following is the best example of a firm operating in a monopolistically competitive market?
a. A Kansas wheat farmer. b. TGI Fridays, a family restaurant. c. U.S. Postal Service. d. Boeing, an aircraft manufacturer
Which of the following would increase GDP?
a. You buy 100 shares of Wal-Mart stock. b. Your car is destroyed by a fire, and you purchase a two-year-old car to replace it. c. Your car is damaged by a fire, and you hire a mechanic to repair it. d. Your car is damaged by a fire, and you reduce the number of hours you work to repair the car yourself.
Desirable property of money
Suppose the market for personal computers in Country A is monopolistically competitive. Country A exports as well as imports personal computers from the rest of the world. After full adjustment to the opening of trade, a firm in this industry probably will
A. enjoy a greater market share. B. receive a higher price for its product. C. go out of business. D. receive a lower price for its product.