An initial allocation of goods is called a(n)
A) endowment.
B) inheritance.
C) pareto set.
D) general equilibrium goods set.
A
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Customs unions and free trade areas are identical in the manner in which member countries treat imports from nonmember countries
Indicate whether the statement is true or false
Discuss how a single bank creates money. What is the limit to which a single bank can add to the money supply? By how much can an entire banking system add to the money supply?
Stocks appear to present risk, yet many people have substantial parts of their wealth invested in them. This behavior could be explained by:
A. investing in stocks over the long run is not as risky as short-term holdings of stocks B. people are not very risk-averse and do not require a risk premium for stocks. C. people are not efficient users of information. D. people are irrational in their investment behavior, only focusing on positive outcomes.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the
equilibrium quantity (Q) of X. Refer to the given information. If X is an inferior good, a decrease in income will: A. decrease D, decrease P, and decrease Q. B. decrease D, decrease P, and increase Q. C. increase S, decrease P, and increase Q. D. increase D, increase P, and increase Q.