The "unfair-competition" argument might be cited by an American who believes that
a. almost every country has a comparative advantage, relative to the United States, in producing almost all goods.
b. young industries should be protected against foreign competition until they become profitable.
c. the American automobile industry should be protected against Japanese firms that are able to produce automobiles at relatively low cost.
d. the French government's subsidies to French farmers justify restrictions on American imports of French agricultural products.
d
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If, for an imaginary closed economy, investment amounts to $12,000 and the government is running a $2,000 deficit, then private saving must amount to $10,000
a. True b. False Indicate whether the statement is true or false
Gertie saw a pair of jeans that she was willing to buy for $35. The price tag, though, said they were $29.99. Therefore:
A. Gertie should buy the jeans because the price is less than her reservation price. B. Gertie should buy the jeans because the price is more than her reservation price. C. Gertie should not buy the jeans because the price is not equal to her reservation price. D. Gertie should not buy the jeans because they will be of lower quality than she expected.
Figure 10-18
Beginning in from long-run equilibrium at point E1, the aggregate demand curve shifts to AD2. The economy's path to a new long-run equilibrium is represented by a movement from
a.
E3 to E1 to E2.
b.
E1 to E3 to E2.
c.
E2 to E1 to E2.
d.
E1 to E2 to E3.
Using the aggregate demand/aggregate supply model, explain the difference in the employment prospects of the graduates of 2007 and 2009.
What will be an ideal response?