According to Linder, the gains from international trade come about because consumers are exposed to
A) a greater variety of goods.
B) increasing returns to scale.
C) imperfect competition.
D) None of the above.
A
You might also like to view...
In a certain economy, the components of aggregate spending are given by: C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, the immediate impact on aggregate expenditures of a one-percentage-point increase in the real interest rate (r) from 5 percent to 4 percent is ________, and the eventual impact on short-run equilibrium output is ________.
A. an increase by 15 units; a increase by 150 units. B. an increase by 150 units; a decrease by 1,500 units. C. an increase by 150 units, an increase by 150 units. D. a decrease by 15 units, a decrease by 150 units.
Refer to the table below. The perfectly competitive firm has a random demand with a 50 percent chance of being $6 and a 50 percent chance of being $8. What quantity should the firm produce to maximize its expected profit?
The above table summarizes the marginal cost of production at various quantity levels for a perfectly competitive firm.
A) 110
B) 140
C) 130
D) 120
The labor force participation rate is defined as the number of
a. unemployed individuals plus employed individuals divided by the number of individuals in the working-age population. b. employed individuals divided by the number of individuals in the working-age population. c. unemployed individuals plus employed individuals divided by the number of employed individuals. d. employed individuals divided by the number of individuals employed plus the number of unemployed individuals.
The equation now called the ______________ starts with a 2 percent real interest rate, and then instructs the Fed to lower the interest rate in proportion to any recessionary gap and to raise it in proportion to any excess of inflation above 2 percent.
A. Taylor rule B. rule of 70 C. Spencer’s rule D. None of the above is correct.