The gains from trade creation are likely to be larger for a country if
A. the supply of the imported good by the foreigners is relatively inelastic.
B. it mainly imports primary products.
C. its import demand curve is relatively elastic.
D. the country's government sufficiently subsidizes the production of its exportable goods.
Answer: C
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If workers accurately predict the rate of inflation, is there a short-run trade-off between inflation and unemployment, as predicted by the Phillips curve? Why or why not?
What will be an ideal response?
Stabilization of business cycle fluctuations focuses on the long run
Indicate whether the statement is true or false
How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States?
a. Aggregate supply will decrease, leading to a decrease in real GDP. b. Aggregate supply will increase, leading to an increase in real GDP. c. Aggregate supply will increase, leading to an increase in prices and smaller GDP. d. A change in the price of an imported good will not affect the domestic economy of an oil-importing country.
Refer to the information provided in Table 19.8 below to answer the question(s) that follow.Table 19.8Total IncomeTotal Taxes$20,000 $2,000 40,000 4,800 60,000 9,000 80,000 16,000Related to the Economics in Practice on page 393: Refer to Table 19.8. At an income level of $60,000, the average tax rate is
A. 1.5%. B. 6.67%. C. 15%. D. 22.5%.