When market exchange occurs voluntarily in a competitive market
a. choice incurs no opportunity cost
b. the sum of consumer surplus and producer surplus is maximized
c. both consumer surplus and producer surplus are eliminated
d. buyers benefit at the expense of producers
e. the exchange confers no net benefit to the participants
B
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Professor I.M. Dismal returns to campus in the fall to find that the bookstore is charging 10% more for the new economics textbooks he ordered this year compared to last year
On the basis of this information, and using the economic way of thinking, what can Professor Dismal clearly conclude? A) The economy has experienced a 10% inflation over the year. B) The economy has experienced a 10% deflation over the year. C) The economy has experienced a disinflation over the year. D) The economy has experienced a steady price level over the year. E) The bookstore is charging 10% more for the new textbooks he ordered this year compared to last year.
If the Fed decides to increase interest rates to fight off potential inflation, and their policy action kept the inflation rate stable, then other things equal, this would result in
A) the IS curve shifting to the right. B) the IS curve shifting to the left. C) the MP curve shifting up. D) the MP curve shifting down.
The mainstream view among economists is that
a. society faces a tradeoff between unemployment and inflation, but only in the short run. b. society faces a tradeoff between unemployment and inflation, but only in the long run. c. society faces a tradeoff between unemployment and inflation, both in the short run and in the long run. d. no tradeoff exists between unemployment and inflation, either in the short run or in the long run.
Political factors influence international trade because
A. foreign trade always involves at least two governments. B. foreign governments are much less concerned with the welfare of citizens in other countries. C. foreign governments often establish impediments to free international trade. D. All of the above are correct.