If the opportunity cost of manufacturing machinery is higher in the United States than in Britain and the opportunity cost of manufacturing sweaters is lower in the United States than in Britain, then the United States will:
A) export both sweaters and machinery to Britain.
B) import both sweaters and machinery from Britain.
C) export sweaters to Britain and import machinery from Britain.
D) import sweaters from Britain and export machinery to Britain.
Ans: C) export sweaters to Britain and import machinery from Britain.
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The federal budget is defined as
A) an annual statement of expenditures and tax revenues of the U.S. government. B) a monthly statement of whether the U.S. government is in deficit or surplus. C) a monthly statement of expenditure laws passed by the U.S. government. D) an annual statement of what policy actions the U.S. government has pursued. E) an annual statement of U.S. government violations of international laws.
If a consumer is maximizing utility and then the price of Good A increases: a. the marginal utility from the consumption of Good A will fall
b. the marginal utility from the consumption of Good A will remain unchanged. c. the marginal utility per dollar spent on Good A will decrease. d. consumption of Good A will increase.
If there is a surplus in the market for loanable funds, then the interest rate
a. rises, so national saving rises. b. rises, so national saving falls. c. falls, so national saving rises. d. falls, so national saving falls.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.