Refer to the table above. France has absolute advantage in
A) grapes.
B) textiles.
C) both grapes and textiles.
D) neither grapes nor textiles.
D
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Inflation targeting refers to conducting ________ policy so as to commit the central bank to achieving a ________
A) monetary; publicly announced level of inflation B) fiscal; publicly announced level of inflation C) fiscal; zero inflation rate D) monetary; zero inflation rate
Refer to Figure 12-12. Consider a typical firm in a perfectly competitive industry that makes short-run profits. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
Roy just got a big promotion at work which includes a sizable pay increase. Roy's demand for Ramen Noodles, an inferior good, will likely:
A. decrease, and his demand curve will shift to the right. B. decrease, and his demand curve will shift to the left. C. increase, and his demand curve will shift to the right. D. decrease, causing a movement down along his demand curve.
A subsidy to firms intended to reduce pollution in an industry would
A. shift the LRAC curve upward. B. have the same impact on the firm as a tax. C. likely drive some existing firms from the industry. D. likely have the paradoxical effect of increasing pollution in the industry in the long run.