In what way is international trade beneficial to both parties?
a. It reduces shipping costs by passing them on to consumers.
b. It increases output and income levels in the whole trading area.
c. It lowers consumer expectations of quality and durability.
d. It strengthens the cultural identities of each trading partner.
b. It increases output and income levels in the whole trading area.
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The table above gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States
a. What was the value of net exports of goods and services in 1999? b. What was (nominal) GDP equal to in 1999? c. What was the (nominal) value of total production equal to in 1999?
An increase in the expected future price of a good will cause the current demand for the good to:
a. decrease, which is a shift to the left of the demand curve. b. decrease, which is a shift to the right of the demand curve. c. increase, which is a shift to the left of the demand curve. d. increase, which is a shift to the right of the demand curve.
When demand is elastic, the absolute number for price elasticity will be
A. Equal to 1. B. Greater than 0. C. Greater than 1. D. Less than 1.
Assuming that Figure 7.1 is a market for money that can be borrowed or saved, Box 6 is 
A. "$*" for the equilibrium amount borrowed/saved. B. "r*" for equilibrium interest rate. C. "r" for interest rate. D. "$" for the amount borrowed/saved.