When a certain nation abandoned a policy of prohibiting international trade in automobiles in favor of a free-tree policy, the result was that the country began to import automobiles. The change in policy improved the well-being of that nation in the sense that
a. both producers of automobiles and consumers of automobiles in that nation became better off as a result.
b. the gains to automobile producers in that nation exceeded the losses of the automobile consumers in that nation.
c. the gains to automobile consumers in that nation exceeded the losses of the automobile producers in that nation.
d. even though total surplus in that nation decreased, it was still true that consumer surplus and producer surplus increased.
c
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Nations with low levels of GDP per capita may converge to richer nations if
A) nations with high levels of income experience a continuously increasing growth rate. B) nations with lower levels of income grow more quickly than those with higher levels of income. C) nations with lower levels of income grow more slowly than those with higher levels of income. D) nations with lower levels of income spend less on investment.
A capital ________ can promote financial instability in an emerging-market country because it is what forces a country to ________ its currency
A) inflow; devalue B) inflow; revalue C) outflow; devalue D) outflow; revalue
All of the following are major factors limiting economic growth in developing countries EXCEPT
A) dead capital. B) deregulation. C) inefficient government regulation. D) corruption.
If the price level rises, the effect on the expenditure schedule and equilibrium real GDP is to
a. increase both. b. decrease both. c. shift the expenditure schedule upward and decrease equilibrium real GDP. d. shift the expenditure schedule downward and increase equilibrium real GDP.