With free trade between China and the United States, the winners are ___________ and the losers are _______
A. U.S. consumers of U.S. imports; U.S. producers of the U.S. import good
B. China's consumers of China's imports; China's producers of its export good
C. U.S. producers of the U.S. export good; U.S. consumers of U.S. imports
D. China's consumers of China's export good; China's producers of its imported good
A Figure 8.3 in the text shows that the U.S. price of the imported good falls, so that U.S. consumers win and U.S. producers lose.
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A) Infinitely inelastic supply curve B) Infinitely elastic supply curve C) Somewhat inelastic supply curve D) Elastic demand curve
According to the theory of liquidity preference, a decrease in the price level causes the
a. interest rate and investment to rise. b. interest rate and investment to fall. c. interest rate to rise and investment to fall. d. interest rate to fall and investment to rise.
Any point inside a production possibilities curve indicates:
A) unemployment and/or inefficiency. B) that the law of increasing opportunity costs is no longer valid. C) that society doesn't want more of either good. D) that economic growth is no longer possible.
The Federal Reserve econometric model estimates that a 1 percent increase in government spending, with the money supply held constant, will
A) increase real GDP by 1 percent per year for two years. B) increase real GDP by 2 percent per year for two years. C) decrease real GDP by 1 percent per year for two years. D) have no effect on real GDP.