If the economy is booming, which of the following would most likely happen?
a. The sale of durable goods will remain constant.
b. Investment expenditures will remain constant.
c. The sale of nondurable goods will soar.
d. Investment expenditures will soar.
d. Investment expenditures will soar.
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Specialization and trade
A) does not benefit anyone. B) allows nations to produce inside their individual production possibilities frontier. C) allows nations to consume combinations of products that are outside their individual production possibilities frontier. D) shifts the production possibilities frontier inward. E) shifts the production possibilities frontier outward.
Which of the following is not an accurate description of the point at which the labor supply and labor demand curves meet?
a. The point at which the market for labor has cleared b. The real wage at which the quantity of labor demanded is equal to the quantity of labor supplied c. The point at which there is no frictional unemployment d. The point at which there is no unemployment e. The wage at which the number of workers firms want to hire is equal to the number of people who want jobs
The nation of Spritzland used to prohibit international trade, but now trade is allowed, and Spritzland is exporting wristwatches. Relative to the previous no-trade situation, total surplus in the market for wristwatches in Spritzland has increased
a. True b. False Indicate whether the statement is true or false
Private solutions to externalities are most effective if ________
A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities