In the opening of free trade, if world prices of a good are less than domestic prices of that same good,
a. domestic consumers will experience a loss of surplus.
b. domestic prices will drop to the world price level.
c. all domestic producers of that good will try to find another market because they can't compete with foreign producers.
d. domestic producers will increase the quantity supplied in order to crowd out the foreign-produced good.
b
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
The concept of economies of scope describes the savings acquired from simultaneous production of different products.
Answer the following statement true (T) or false (F)
A firm in a monopolistically competitive market is similar to a monopoly in the sense that (i) they both face downward-sloping demand curves. (ii) they both charge a price that exceeds marginal cost. (iii) free entry and exit determines the long-run equilibrium
a. (i) only b. (ii) only c. (i) and (ii) only d. (i), (ii), and (iii) only
The goals of fiscal policy are (1) _______; (2) ________; and (3) ________.
Fill in the blank(s) with the appropriate word(s).