Which of the following statements correctly summarizes a difference between the layperson's and the economist's views of the net benefits of trade?
A. Economists focus on trade in manufactured goods while laypeople also focus on trade involving the services of people who manage the trade.
B. Economists often argue that the gains from trade in the form of low consumer prices tend to be widespread and not easily recognizable while the costs in jobs lost tend to be concentrated and readily identifiable.
C. Economists often argue that most U.S. jobs are at risk of outsourcing while laypeople intuitively recognize that inherent in comparative advantage is that each country has a comparative advantage in the production of some good.
D. Economists most often argue that the costs of trade outweigh the benefits while laypeople often argue that the benefits of trade outweigh the costs.
Answer: B
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Oligopolist A cuts price in an attempt to enlarge his share of the market. His competitors fail to retaliate with price cuts. In this case, in Figure 13-3, oligopolist A will move from point A to which point?
A. B B. C C. D D. E
None of the transition economies avoided the transition recession
a. True b. False
When OPEC caused the price of oil to rise in the early 1970s, the:
A. aggregate supply curve shifted to the right. B. aggregate supply curve shifted to the left. C. aggregate demand curve shifted to the right. D. aggregate demand curve shifted to the left.
The change in business inventories is a component of investment.
Answer the following statement true (T) or false (F)