Econville opens up trade with its neighboring countries. This causes the number of sellers of science fiction novels to increase. What happens to the equilibrium price and quantity?
a. Price and quantity both increase.
b. Price decreases, and quantity increases.
c. Price increases, and quantity decreases.
d. Price and quantity both decrease.
b. Price decreases, and quantity increases.
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If the British pound appreciates, U.S. television stations need fewer dollars to buy episodes of a Britcom from the British Broadcasting Company
a. True b. False
The sacrifice ratio of the Volcker disinflation was larger than previous estimates had predicted
a. True b. False Indicate whether the statement is true or false
A country imports $20 billion worth of goods and services and exports $15 billion worth of goods and services. What is its net capital outflow?
a. $5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets b. $5 billion, so foreigners' purchases of domestic assets exceed its resident's purchases of foreign assets c. -$5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets d. -$5 billion, so foreigners' purchases of domestic assets exceed its residents' purchases of foreign assets
Figure 6.5 illustrates the market for sugar. With free trade, consumer surplus in the market would be shown as area:
A. ABC. B. AEF. C. GEQ1. D. ABQ20.