Trade diversion may be such that the combined welfare of two nations in the agreement actually ____ because of ____, not completely offset by the _____.
a. falls; loss of tariff revenue for the importing nation; gain in the exporting nation's producer surplus
b. rises; gains from trade; loss of jobs in the importing industry
c. rises; gain in tariff revenue; gain in jobs
d. remains the same; loss of tariff revenue; gains from product variety
Ans: a. falls; loss of tariff revenue for the importing nation; gain in the exporting nation's producer surplus
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The more time gasoline consumers have to adjust to a price change,
A) the lower their price elasticity of demand. B) the greater their price elasticity of demand. C) the less sensitive they will be to the price change. D) the less time they will have to seek out substitutes for gasoline.
By selling products in both retail stores and outlet stores, firms can increase their profits by charging ________ prices to consumers with a low price elasticity of demand and ________ prices to consumers with a higher price elasticity of demand
A) higher; lower B) lower; lower C) higher; higher D) lower; higher
Credit card balances are: a. included in both M1 and M2
b. included in M1 but not M2. c. included in M2 but not M1. d. not included in either M1 or M2.
The existence of an inflationary gap should cause
a. wages to fall. b. prices to fall. c. unemployment to rise. d. net exports to rise.