Compared to the no-trade situation, when a country imports a good:
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses.
b. domestic consumers lose, domestic producers gain, and the gains outweigh the losses.
c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains.
d. domestic consumers gain, domestic producers lose an equal amount.
a
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Answer the next question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$450$425$2,000Year 25004503,000Year 36005004,000Year 46406205,000Year 56805804,800Year 66006205,000As a percentage of GDP, the budget deficit was ________ in year 3.
A. 12.5% B. 2.5% C. 0% D. 15%
The Great Recession is remembered by most economists as a period of
A. hyperinflation. B. high rates of unemployment. C. price controls and low inflation. D. the inability of the Federal Reserve to assist the financial system.
Markets promote
A) equity and competition. B) voluntary exchange and equality. C) equity and equality. D) competition and voluntary exchange.
Regulation that is based on allowing prices to reflect only the actual operating cost of production is known as
A. cost-of-service regulation. B. rate-of-return regulation. C. average cost regulation. D. marginal cost regulation.