If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices, the Swedish economy would be worse off
a. True
b. False
Indicate whether the statement is true or false
False
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Consider the two graphs above. Suppose rising fuel costs makes it more expensive to move goods to and from warehouses. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Which of the following countries has medium to high levels of trade by world standards, but in 2008 had a moderate trade surplus?
a. Germany b. Japan c. the United Kingdom d. Sweden
The political incentive structure tends to
a. encourage a balanced budget regardless of economic conditions. b. discourage budget deficits during recessions. c. encourage budget surpluses during both recessions and expansions. d. encourage budget deficits during both recessions and expansions.
Which part of the average total cost (ATC) curve is described in the following scenario? To keep up with an increase in sales, a bread factory has added workers and equipment. The factory is teeming with employees, equipment breaks down, injuries occur, and tools are misplaced.
a. High ATC at low output.
b. Low ATC at high output.
c. High ATC at high output.
d. Low ATC at low output.