A country will export a good if it
A) can sell the good to a foreigner at a lower price than the no-trade price.
B) can sell the good to a foreigner at a higher price than the no-trade price.
C) has a high opportunity cost of production.
D) is impossible to import the good.
E) can dump the good on the world market.
B
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When you borrow money from a bank, your bank charges you interest on the loan to compensate for all of the following except
A) inflation. B) liquidity risk. C) the risk of default. D) the opportunity cost of other uses for the loaned money.
With respect to the market clearing price and the equilibrium quantity of good X, increases in the demand for and the supply of good X will definitely
A) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X. B) reduce the market clearing price and the equilibrium quantity of good X. C) increase the market clearing price and the equilibrium quantity of good X. D) increase the equilibrium quantity of good X but have an uncertain impact on the market clearing price of X.
Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. None of the above is correct.
According to John Maynard Keynes:
A. aggregate expenditures (demand) can be forever inadequate to achieve full employment. B. aggregate output (supply) can be forever inadequate to achieve full employment. C. the economy would automatically adjust to full employment in the long run. D. neither aggregate demand nor aggregate supply is a determinant of full-employment real GDP.