When a nation imports a good, its consumer surplus ________, and its producer surplus ________
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; increases
C
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The socialist countries of Eastern Europe have
A. fewer environmental problems than capitalist countries. B. improved their environment more than the capitalist countries. C. worse environmental problems than capitalist countries. D. worsened since the collapse of communism there.
In a country with floating exchange rates and low capital mobility, an increase in government spending will be
A) highly effective. B) less effective than with high capital mobility. C) not effective at all. D) harmful to the growth of real incomes.
Define the following terms briefly and concisely and indicate their importance to the study of economics
a. entrepreneurship b. investment c. capital d. innovation e. discounting
_________ is the investment that individuals make in education, training, and health care that raise their productive capacity.
A. Capital market B. Human capital C. Human engineering D. Private good production