The figure below shows the U.S. market for imported wine. For simplicity, we consider export supply curves to be flat. Chilean wine is available for $480 per barrel and French wine is available for $420 per barrel.
Under free trade, how many barrels of wine will the United States import and who will they import from?
A. 15 million barrels from Chile
B. 22 million barrels from Chile
C. 22 million barrels from France
D. 10 million barrels from France
Answer: C
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If the supply of money increases, the long-run aggregate supply curve suggests that output will not change but the price level will
Indicate whether the statement is true or false
When decisions are guided strictly by short-run gains, this is known as
A) opportunistic behavior. B) the prisoners' dilemma. C) tit-for-tat strategy. D) a positive-sum game.
The stock price of a firm is primarily a reflection of the
a. firm's current net earnings per share. b. firm's expected future net earnings per share. c. discounted value of the firm's expected future net earnings per share. d. firm's current net earnings per share multiplied by the interest rate. e. book value of the firm.
What does a production possibilities curve show?
a. the amount of goods and services that all groups together want to purchase in a given period b. the difference between the actual distribution of income and perfect equality c. the inverse relationship between production and quantity demanded d. the potential total output combinations of any two goods for an economy in a given period