If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy of reducing or eliminating imports of rice into their country would include:
a. making the price of rice in Japan rise
b. making the real incomes of Japanese rice producers rise, but the real incomes of Japanese rice consumers fall.
c. making the real incomes of non-Japanese rice exporting countries lower.
d. all of the above
d
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The "law of demand" is illustrated by a
A) rightward shift of the demand curve. B) leftward shift of the demand curve. C) movement along the demand curve. D) Both answers A and B are correct.
To measure economic welfare, one needs only to measure real GDP
Indicate whether the statement is true or false
Picture the graph. When new firms enter a monopolistically competitive market, the result is a(n)
a. shift to the left of the existing firms' demand curves b. shift to the right of the existing firms' demand curves c. more inelastic set of demand curves for the existing firms d. decrease in market output (the sum of all firms' output) e. increase in price and decrease in firm's economic profit
Government purchases rise by $100 billion and the MPC equals 0.75. Assuming that idle resources exist at each expenditure round, and the multiplier is operative, the change in Real GDP equals
A) $40 billion. B) $75 billion. C) $400 billion. D) $750 billion. E) $250 billion.