If two countries have identical production possibility frontiers, then trade between them is likely to be beneficial if
A) their supply curves are identical.
B) their cost functions are identical.
C) their demand conditions are identical.
D) their incomes are identical.
E) their demand functions differ.
E
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Assume the price of a movie is $10. Jenna demands 2 movies per week, Sam demands 3 movies per week, and Jordan demands 8 movies per week. From this information we can conclude that
A) the market quantity demanded at a price of $10 is at least 13 movies per week. B) Jordan is obviously more wealthy than either Sam or Jeanna. C) Sam is irrational compared to Jenna or Jordan. D) the movie industry is unprofitable.
National economic policies are usually set by the local government in the U.S., making it the focus of economic discussions
a. True b. False Indicate whether the statement is true or false
For a country to successfully maintain a fixed exchange rate value of its currency relative to another currency (for example, as is done when currencies are unified or pegged), it must
a. maintain a relatively high rate of inflation. b. balance the government budget each year. c. give up the independence of its monetary policy. d. run a trade deficit.
Which of the following equations is always correct in an open economy?
a. NX = Y - C - G - I b. NX = S - I c. NX = NCO d. All of the above are correct.