For Country A, the world price of textiles exceeds the domestic equilibrium price of textiles. As a result, international trade allows sellers of textiles in Country A to experience greater producer surplus than they otherwise would experience
a. True
b. False
Indicate whether the statement is true or false
True
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In 18th century Europe, governments gave guilds legal authority to limit production of goods
This authority obstructed the market mechanism because the guild's actions prevented the forces of ________ from coordinating the self-interested decisions of producers and consumers. A) demand and supply B) nature C) opportunity cost D) absolute advantage
If the Federal Reserve raises the discount rate, the market rate of interest
a. will rise but the monetary base will be unchanged. b. will rise and the monetary base will fall. c. and the monetary base will both rise. d. will fall and the monetary base will rise.
Which of the following is not an advantage of modern corporations?
a. Limited liability b. Longevity and permanence c. More likely to earn higher profits d. Ease of attracting investors
Tariffs tend to reduce the volume of imports by
A. Setting maximum allowable import limits. B. Making them more expensive to domestic consumers. C. Placing severe quality restrictions on imported goods. D. Reducing prices of domestically produced goods.