Refer to above figure. If the economy were in the initial position (where OmL1 workers were in manufacturing, what trade policy might gain ABC of economic welfare?
What will be an ideal response?
Import-substitution giving protection to manufacturing.
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The goal of the Single European Act (or Europe 1992 initiative) is to
A) develop uniform product standards for all EU countries. B) remove nontariff barriers to trade between EU countries. C) deregulate economic activities in transportation and financial services. D) All of the above.
When an industry's raw material costs increase, other things remaining the same,
A) the supply curve shifts to the left. B) the supply curve shifts to the right. C) output increases regardless of the market price and the supply curve shifts upward. D) output decreases and the market price also decreases.
According to classical macroeconomic theory, changes in the money supply affect
a. variables measured in terms of money and variables measured in terms of quantities or relative prices b. variables measured in terms of money but not variables measured in terms of quantities or relative prices c. variables measured in terms of quantities or relative prices, but not variables measured in terms of money d. neither variables measured in terms of money nor variables measured in terms of quantities or relative prices
If steak is a normal good, what do you suppose would happen to price and quantity during an economic recession?
A. Price would increase and quantity decrease. B. Price would decrease and quantity increase. C. Price and quantity would both increase. D. Price and quantity would both decrease.