Refer to Edgeworth Box Economy. In an Edgeworth box, points within the region of mutual advantage represent allocations that
a. can be achieved by a competitive market.
b. both consumers prefer to the initial endowment.
c. exhaust the potential gains from trade.
d. are Pareto optimal.
b. both consumers prefer to the initial endowment.
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Suppose, as a result of various dynamic factors associated with exposure to international competition, Albania's economy grew, and is now represented by the rightmost production possibility frontier in the figure above
If its point of production with trade was point c, would you consider this growth to be export-biased or import biased? If Albania were a large country with respect to the world trade of A and B, how would this growth affect Albania's terms of trade? Its real income?
Perfect price discrimination
a. is a common occurrence in situations with many buyers. b. occurs fairly often in situations with only a few buyers. c. is only observed in competitive markets. d. rarely occurs because firms do not have sufficient power to differentiate among specific buyers.
Who in the adult population is counted as "employed" in U.S. labor statistics?
a. people who are temporarily absent from their job and people who work without pay in a family member's business b. people who are temporarily absent from their job but not people who work without pay in a family member's business c. people who work without pay in a family member's business but not people who are temporarily absent from their job d. neither people who are temporarily absent from their job nor people who work without pay in a family member's business
Part of the normal aftermath of a period of excessive aggregate demand is
A. improvement in the quality of life. B. reflation. C. real GDP growth. D. stagflation. E. All of these responses are correct.