Identify the correct sequence of economic integration starting from the least integrated to the most integrated.
a.free trade area, customs union, economic union, political union, and common market
b. free trade area, customs union, common market, economic union, and political union
c. common market, free trade area, customs union, economic union, and political union
d. free trade area, common market, customs union, economic union, and political union
e. common market, free trade area, customs union, political union, and economic union
Answer: b. free trade area, customs union, common market, economic union, and political union
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Using the above figure, which of the following is CORRECT?
A) 1 guilder will sell for $2. B) 1 dollar will sell for 1/2 guilder. C) A shortage of guilders exists at an exchange rate above $0.60. D) A surplus of guilders exists at an exchange rate above $0.60.
Suppose, at its present rate of output, a perfectly competitive firm's marginal revenue exceeds both its marginal cost and its average variable cost. To maximize profit, the firm should
a. lower the price b. raise the price c. increase output d. reduce output e. maintain its current rate of output
Game theory is useful to analyze oligopoly markets because a. each firm is a price taker
b. the market is comprised of a single firm. c. the firms in the market engage in strategic behavior. d. each firm produces a differentiated product.
Suppose the supply of Malaysian rubber increases. If U.S. producers purchase this rubber as an input, in the United States, this would cause a
A) rightward shift of the AD curve. B) leftward shift of the AD curve. C) rightward shift of the SRAS curve. D) leftward shift of the SRAS curve.