Which of the following is true of a used-car market?
A) Sellers have more information than the buyers.
B) Gains from trade do not exist in this market.
C) The cars sold are identical in quality.
D) There is no consumer surplus in this market.
A
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Trade diversion results in
A) an increase in the total amount of trade in the world. B) a decrease in the total amount of trade in the world. C) no change in the total amount of trade in the world. D) either an increase or decrease in the amount of trade in the world, depending on where trade takes place.
When there is a permanent fall in the domestic money supply, the exchange rate:
a. falls in the short run and rises slightly in the long run. b. falls in the short run and falls more in the long run. c. rises in the short run and falls slightly in the long run. d. rises in the short run and rises more in the long run.
?Exhibit 10A-1 Aggregate demand and supply model
?Beginning from short-run equilibrium at point E2 in Exhibit 10A-1, the economy's movement to a new position of long-run equilibrium would best be described as:
A. ?a movement along the AD2 curve with a shift in the SRAS1 curve. B. ?a movement along the SRAS2 curve with a shift in the AD2 curve. C. ? a shift in the LRAS curve to an intersection at E1. D. ?no shift of any kind.
Figure 17.1 depicts a firm's marginal revenue product curve. The marginal revenue product curve is negatively sloped because ________ decreases as the firm uses more labor.
A. the hourly wage B. the marginal product of labor C. the product price D. None of these