Suppose a nation opens up to free trade and becomes an exporter of goods. Which of the following is then true?
A) The nation as a whole suffers losses.
B) Sellers lose.
C) Buyers lose.
D) Buyers gain.
C
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Net benefits of an alternative equal:
A) benefits minus costs. B) benefits divided by costs. C) the sum of benefits and costs. D) the product of benefits and costs.
If the autarky price of S were lower in country A than in country B, then if trade were allowed
A) A would likely export S to B. B) A would likely import S from B. C) neither country would want to trade. D) None of the above.
Which one of the following is an area of continued disagreement among modern macroeconomists with regard to the use of fiscal policy?
a. Automatic stabilizers help reduce the fluctuations in aggregate demand and output. b. It is difficult to time changes in discretionary fiscal policy in a manner that will promote stability. c. Fiscal policy is much less potent than the early Keynesian view implied. d. Budget deficits are a highly effective tool with which to combat a severe recession.
Refer to the graph shown. The profit-maximizing monopolist produces output:
A. Q1. B. Q2. C. Q3. D. Q4.