Americans whose jobs have been lost to free trade should, in theory:
A. leave the workforce, in the long run.
B. gain surplus, as the income effect outweighs the price effect of their labor.
C. be able to find new jobs, given time.
D. have extended bouts of unemployment due to static job skills.
C. be able to find new jobs, given time.
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Refer to Figure 7-2. With the tariff in place, the United States consumes
A) 18 million pounds of coffee. B) 20 million pounds of coffee. C) 26 million pounds of coffee. D) 38 million pounds of coffee.
In the Keynesian system, an increase in the money stock would
a. increase the interest rate, which, in turn, would increase aggregate demand and income. b. decrease the interest rate, which, in turn, would decrease aggregate demand and income. c. decrease the interest rate, which, in turn, would increase aggregate demand and income. d. decrease the interest rate but would have no effect on aggregate demand and income.
Improvements in the level of technology will generally shift the production function downward
a. True b. False Indicate whether the statement is true or false
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. 
The long-run equilibrium price in this industry is:
A. $10 B. $0 C. $5 D. $15