In the specific factors model, the effects of trade on welfare overall are ________ and for fixed factors used to produce the imported good they are ________
A) positive; negative
B) positive; positive
C) negative; positive
D) ambiguous; positive
E) positive; ambiguous
A
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When speculators begin to sell futures contracts, suppliers will
a. try to sell more in the spot market. b. store more of their crop to sell in the future. c. not have any incentive to change their plans. d. earn larger profits.
Specialization and trade are beneficial to society because:
A. a division of labor lowers prices for products. B. scarce resources are utilized more efficiently. C. the output of economic goods may be increased with no increase in resources. D. All of these are correct.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. From the law of demand we know that ax will be:
A. greater than zero. B. less than zero. C. zero. D. none of the statements associated with this question are correct.