If a customs union includes the lowest-cost world producer of a product, then member countries:
a. will always be better off in trade with that product.
b. will always be worse off in trade with that product.
c. can be better off or worse off depending on the strengths of the trade diversion and trade creation effects for that product.
d. will no longer export or import that product.
Ans: a. will always be better off in trade with that product.
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The Keynesian model agrees with monetarists and new classical models about the fact that
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To state that public saving is equal to investment, for a closed economy, is to state an accounting identity
a. True b. False Indicate whether the statement is true or false
Josh is willing to pay $500 for a set of tire, but he is able to pay $300 at the local tire store. His consumer surplus is
a. $800. b. $300. c. $200. d. $500.
A firm in a perfectly competitive industry will maximize profits by adjusting
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