What is the significant feature of a preferential arrangement?
What will be an ideal response?
It is created with unilateral action, as in the U.S. lowers barriers specifically to a nation without asking for reciprocity.
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
In part, microeconomics is concerned with
A) how a business firm decides upon the amount it produces and the price it sets. B) changes in the economy's total output of goods and services over long periods of time. C) factors that explain changes in the unemployment rate over time. D) the Federal Reserve's policy decisions.
A production possibilities curve shows the various combinations of two outputs that:
a. an economy should produce. b. an economy can produce. c. consumers would like to consume. d. producers would like to produce.
Megan is trying to decide whether to buy house insurance for her home in Miami. Her house is worth $200,000 and analysts have determined that the average loss from a Hurricane could be $45,000. They have also determined there is a 50 percent chance that she will face a hurricane. Suppose Megan is a risk averse person with a utility-of-income function such as the one given below. If the policy costs $22,500, Megan will 
A. be indifferent between buying or not buying the insurance. B. not buy the insurance. C. buy the insurance. D. we can't say.