Which of the following statements best describes the domestic beneficiaries of international trade?
a. Over time, the average person gains from international trade as a worker, but not as a consumer.
b. Over time, the average person gains from international trade, both as a worker and as a consumer.
c. Over time, the average person gains from international trade as a consumer, but not as a worker.
d. Over time, the average person does not gain from international trade, either as a worker or as a consumer.
b. Over time, the average person gains from international trade, both as a worker and as a consumer.
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
With coalition building and bargaining, transactions costs are higher the larger number of people involved
Indicate whether the statement is true or false
Halibut tends to be much more expensive than cod. According to the economic way of thinking, relatively high halibut prices can be explained by
A) using the theory of supply and demand. B) pointing out the cause—Halibut boats are often more expensive than boats used to fish for cod. C) acknowledging the price differential is unfair to consumers of halibut. D) acknowledging the price differential is unfair to cod fishermen.
Net utility is
A. equal to total utility from the quantity acquired of a good minus the utility lost by having to pay for it. B. equal to the sum of the marginal utilities. C. equal to an optimal number easily calculated by the consumer. D. always greater than total utility.