According to the graph shown, if the economy opens itself to free trade, producer surplus will:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. decrease to area I.
B. decrease to area EI.
C. increase to EI.
D. increase to ABCDEFGH.
A. decrease to area I.
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One effect of a shrinking economy is
A) an increase in the discount rate. B) a decrease in the discount rate. C) an increase in the federal funds rate. D) a decrease in the federal funds rate.
In the simple circular flow model containing just households and business firms, the entire product flows to ________ in exchange for ________
A) business firms, labor services B) business firms, wages C) households, consumer expenditures D) households, labor services
In international trade the term "dumping" means
A) price discrimination by domestic producers. B) selling goods in a foreign market for a price less than on the home market. C) selling goods in a home market for a price less than on the foreign market. D) selling goods on the black market to avoid paying taxes.
On a given short-run Phillips curve which of the following is not held constant?
a. the level of GDP b. the position of the aggregate-supply curve c. expected inflation d. the expected growth rate of the money supply