The equilibrium price under an import quota is below the price that occurs with an import ban.
Answer the following statement true (T) or false (F)
True
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If the world price for good A is below the domestic price for good A without trade, then consumer surplus will ________ and total economic surplus will ________ with trade.
A. increase; decrease B. decrease; increase C. decrease; decrease D. increase; increase
The saying "Money is a veil.". means that
a. while nominal variables are the first thing we may observe about an economy, what's important are the real variables and the forces that determine them. b. money is the principal medium of exchange in most economies. c. the primary determinant of short-run economic fluctuations is not real variables, but rather changes in the money supply. d. in the long run money is of no importance to the determination of either real or nominal variables.
The adjustment back to a long-run equilibrium after a sudden decrease in aggregate demand:
A. happens very quickly, leading to a temporary decrease in the unemployment rate. B. happens very quickly, leading to a temporary increase in the unemployment rate. C. takes a long time, during which the economy is growing very rapidly and very few people are unemployed. D. takes a long time, during which the economy is not growing much and many people are unemployed.
The standard of living in a nation depends on
A) how well its economy functions relative to other countries. B) the size of the country, with larger nations always doing better than smaller ones. C) how well the economy functions within that country. D) whether or not its currency is adopted as the world's monetary standard.