The equilibrium price in a market is found where

A. The market demand curve intersects the y-axis.
B. The market supply curve intersects the market demand curve.
C. The market supply curve intersects the y-axis.
D. The market supply curve intersects the x-axis.


Answer: B

Economics

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Discriminatory trade practices are allowed among sister WTO member countries, especially when it comes to

A) the use of child labor in agricultural and textile/apparel products. B) national security and special benefits given to other members of a free trade area. C) the protection of agriculture and textile/apparel from open trade. D) Both A and B are correct. E) Both B and C are correct.

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Eric, a resident of Sweden, purchases a book printed in the U.S. Which country's exports increase?

a. Sweden's b. the U.S.'s c. Sweden's and the U.S.'s d. neither Sweden's nor the U.S.'s

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Externalities may be internalized by

A. government-imposed taxes and subsidies. B. regulation. C. legal rules and procedures. D. All of the choices are correct.

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Refer to the above figure. If the relevant aggregate demand curve is AD2, what is the current economic situation?

A. overemployment B. inflationary gap C. recessionary gap D. equilibrium

Economics