Total surplus is
a. the total cost to sellers of providing the good minus the total value of the good to buyers.
b. the total value of the good to buyers minus the cost to sellers of providing the good.
c. the difference between consumer surplus and sellers' cost.
d. always smaller than producer surplus.
b
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The bargaining power of Transnational Corporations is likely to be greatest when they are looking for
a. specific natural resource b. low-wage labor c. marketing centers d. licensing agreements
Which of the following is NOT an implication of the theory of purchasing power parity?
A) Exchange rates move to equalize the purchasing power of different currencies. B) Exchange rates should be at a level that makes it possible to buy the same amount of goods and services with the equivalent amount of any country's currency in the long run. C) A country with a higher inflation rate should experience an appreciation of its currency. D) The real exchange rate should equal one.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and current international transactions become more negative (or less positive). b. Real GDP rises, and current international transactions become more negative (or less positive). c. Real GDP and current international transactions remain the same. d. Real GDP rises, and current international transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following explains the impact of the expansion of international trade on the demand for less skilled workers in the United States?
A. An increase in international trade has increased the demand for less skilled workers. B. An increase in international trade has decreased the demand for less skilled workers. C. An increase in international trade has had little impact on the demand for less skilled workers. D. The impact of the expansion of international trade on the demand for less skilled workers in the United States varies from year to year.