Barriers to free trade impair efficiency in the international allocation of resources.
Indicate whether the statement is true or false.
Answer: True.
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What is a normal profit?
What will be an ideal response?
The real interest rate ________ inflation ________
A) is unaffected in the long run by; because of the classical dichotomy B) moves one for one with expected; in the long run C) always increases with; but because of the Fisher effect lower expected inflation ensues D) all of the above E) none of the above
In the housing market, rents serve the purpose of
A) making landlords rich. B) rationing the availability of existing housing. C) providing an entry by the government into the housing market. D) increasing tax collections by the community.
If we assume only one factor (labor), we can demonstrate on the PPF the opportunity cost of producing less of one good and more of the other good by:
a. taking the sum of the marginal products of labor for the two goods. b. taking the difference of the marginal products of labor for the two goods. c. taking the ratio of the marginal products of labor for the two goods times -1. d. taking the average of the marginal products of labor for the two goods.