As a result of pure free trade in a commodity the
a. price of the commodity must be the same in all countries.
b. total quantity imported will exceed the total quantity exported.
c. price of the commodity will be higher in the producing country.
d. price of the commodity will be lower in the producing country.
a
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The short-run aggregate supply curve shows ________ while the long-run aggregate supply curve shows ________.
A. output; aggregate spending B. potential output; aggregate spending C. the current inflation rate; potential output D. potential output; the current inflation rate
Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?
A) If the price of labor falls, the supply of goods rises, and the prices of those goods fall. B) If the price of labor falls, the quantity supplied of goods rises, and the prices of those goods fall. C) If the price of labor falls, the demand for goods falls, and the prices of those goods fall. D) If the price of labor falls, the demand for goods rises, and the prices of those goods fall. E) If the price of labor falls, the supply of goods falls, and the prices of those goods fall.
Members of IGA are advised by that organization to
A. hire less-qualified people to keep costs down. B. provide a level of service, community involvement, and types of goods Walmart does not. C. "out Walmart" Walmart by lowering prices. D. sell exactly the same goods Walmart does.
Monetary and fiscal policies have little effect on the trade deficit.
Answer the following statement true (T) or false (F)