The total gains from trade within a price system is
A. the area beneath the market demand curve and above the market clearing price plus the area above the market supply curve and beneath the market clearing price.
B. always equal to zero.
C. the area beneath the market demand curve and above the market clearing price minus the area beneath the market supply curve and beneath the market clearing price.
D. the area beneath the market supply curve and above the market clearing price plus the area above the market demand curve and beneath the market clearing price.
Answer: A
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If the dollar appreciates, how will aggregate demand in the United States be affected?
A) Aggregate demand will shift to the right as exports increase. B) Aggregate demand will shift to the right as imports increase. C) Aggregate demand will shift to the left as exports increase. D) Aggregate demand will shift to the left as imports increase.
A production method that relies on large quantities of machines and equipment and smaller quantities of labor is referred to as a:
A) variable-input-intensive method of production. B) labor-intensive method of production. C) technology-intensive method of production D) capital-intensive method of production.
The concept of "global competitiveness"
A) is not practical because economic well-being is evaluated within each country. B) means that the economic well-being of each nation must be compared with nations with same size population. C) means that the economic well-being of each nation must be compared with nations on the same continent. D) means that the export-import ratio of each nation must be compared.
Direct controls that impose equal percentage reductions in emissions on all firms in the area
a. impose the same costs on all firms. b. minimize the cost of pollution reduction. c. penalize firms that have already incurred some costs to reduce pollution. d. are the fairest way to distribute the burden