The net effect of regional trade agreements has been
A. no change in the total amount of trade in the world.
B. a decrease in the total amount of trade in the world.
C. an increase 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.
Answer: C
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Refer to the Article Summary. If Netflix chose to use Shiller's pricing method
A) consumer surplus, producer surplus, and deadweight loss would all be equal. B) producer surplus would be zero. C) deadweight loss would be maximized. D) consumer surplus would be zero.
The lag problem associated with monetary policy is due mostly to
a. the fact that business firms make investment plans far in advance. b. the political system of checks and balances that slows down the process of determining monetary policy. c. the time it takes for changes in government spending to affect the interest rate. d. All of the above are correct.
Assume both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the AVC curve, marginal cost must be:
A. greater than the average variable cost. B. ?less than the average variable cost. C. ?equal to the average variable cost. D. ?at its minimum.
Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Six chewing gum producing firms form a cartel. The firms have identical cost structures. If the cartel produces the profit-maximizing output level, each firm should produce
A. 2,000 packs of chewing gum. B. 6,000 packs of chewing gum. C. 12,000 packs of chewing gum. D. indeterminate output levels from this information.