A small open economy is an economy
A) in which both imports and exports are less than 5% of GDP.
B) whose firms and consumers are individually, but not collectively price takers.
C) whose firms and consumers are collectively, but not individually price takers.
D) whose firms and consumers are individually and collectively price takers.
D
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Refer to Scenario 13.1. If your negotiated price had been $350 instead of $250, the sum of consumer surplus and producer surplus would be:
A) less than what would have accrued at the $250 price. B) the same as what would have accrued at the $250 price. C) more than what would have accrued at the $250 price. D) None of the above is necessarily correct.
If Egypt can produce 3 silver candlesticks or 120 small silver cups in an hour and Turkey can produce 4 silver candlesticks or 160 small silver cups in an hour then
a. neither country would gain by trading b. the terms of trade or 40 silver cups per one silver candlestick and Egypt should only produce silver cups. c. the terms of trade or 40 silver cups per one silver candlestick and Turkey should only produce silver cups. d. the terms of trade or 40 silver cups per one silver candlestick and Egypt should only produce candlesticks. e. the terms of trade or 40 silver cups per one silver candlestick and Turkey should only produce candlesticks.
Fewer of an economy's resources will be channeled into building new factories and equipment when _____
Fill in the blank(s) with the appropriate word(s).
A game in which the players neither negotiate nor coordinate in any way is a
A) cooperative game. B) noncooperative game. C) zero-sum game. D) negative-sum game.