Define the marginal propensity to import
What will be an ideal response?
The marginal propensity to import is the fraction of additional income that is spent on imported goods and services.
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Canada and the U.S. are the world's greatest trading partners. But they wouldn't trade at all if
a. the opportunity costs for the goods they produce are the same in both countries b. the opportunity costs are unequal for all the goods they produce c. their production possibilities curves are unequal d. they had a history of mutual retaliation e. their resources were of different qualities
A market which firms can enter if they choose and exit without losing money invested is
a. pure monopoly. b. duopoly. c. contestable. d. a market where there are kinked demand curves.
In a market with 1,000 identical firms, the short-run market supply is the
a. marginal cost curve above average variable cost for a typical firm in the market. b. quantity supplied by the typical firm in the market at each price. c. sum of the prices charged by each of the 1,000 individual firms at each quantity. d. sum of the quantities supplied by each of the 1,000 individual firms at each price.
Usually when a monopoly that isn't a natural monopoly is broken up, the losses to the producer outweigh the gains to consumers.
a. true b. false