Compared to the no-trade situation, if the United States imports video games,
a. the price of video games will decline in the domestic market.
b. domestic video game producers will be able to charge higher prices.
c. domestic video game producers will expand both output and employment.
d. U.S. consumers will be harmed.
A
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Refer to Scenario 16.1. Suppose instead that Sam is initially allocated 3 cheese doodles and 3 pretzels, whereas Sally is initially allocated 6 cheese doodles and 10 pretzels. Which of the following statements is TRUE?
A) This allocation is Pareto optimal. B) This allocation is not Pareto optimal as Sally and Sam have unequal amounts of each good. C) The allocation is not Pareto optimal as Sally would be willing to exchange two pretzels for one cheese doodle and be better off, without making Sam worse off. D) The allocation is not Pareto optimal as Sam would willing exchange one pretzel for two cheese doodles and be better off, without making Sally worse off.
Which of the following is a leading economic indicator?
a. labor force participation rate b. GDP deflator c. S&P 500 d. Consumer Price Index (CPI)
The additional revenue earned from hiring one more worker is known as the
A. marginal utility of labor. B. marginal factor cost of labor. C. marginal revenue product of labor. D. marginal physical product of labor.
In which of the following sets of circumstances can we confidently expect inflation?
A. Aggregate supply and aggregate demand both increase. B. Aggregate supply and aggregate demand both decrease. C. Aggregate supply decreases and aggregate demand increases. D. Aggregate supply increases and aggregate demand decreases.