Many economists support trade agreements, maintaining that the agreements improve economic efficiency because they result in goods being produced
A) at the highest profit margin.
B) with maximum deadweight loss.
C) with zero producer surplus.
D) at the lowest opportunity cost.
Answer: D
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In the long run, the economic profits for a monopolistically competitive firm will be
A. slightly more than the profits of a purely competitive firm. B. the same as the profits for a purely competitive firm. C. the same as the profits for a monopolist. D. slightly less than the profits of a monopolist.
Imagine two countries, Zorba and Anduluvia. Zorba is producing everything at a lower resource cost than Anduluvia. If the two countries trade what is the reason?
What will be an ideal response?
The expenditure multiplier is smallest when the
A) LM curve is positively sloped. B) LM curve is horizontal. C) IS curve is vertical. D) LM curve is vertical.
Which of the following contributed to the soaring housing prices during 2002-2005?
a. the Fed's low-interest rate policy b. regulations that reduced the required down payment and other lending standards for home mortgages c. the increased leverage lending by Fannie Mae, Freddie Mac, and large investment banks d. all of the above