Based on the Saving-Investment Diagram, if the domestic real interest rate is indicated by B, then ________
A) the value of net exports is zero
B) the diagram represents a closed economy
C) the world real interest rate is indicated by A
D) the difference between values F and E measures the net capital inflow
E) none of the above
A
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If a seller's reservation value for a good is $10 and the price at which the good is sold is $15, his producer surplus is:
A) $25. B) $150. C) $1.5. D) $5.
A tariff is which type of tax?
(a) Progressive (b) Regressive (c) Proportional (d) Neutral
According to strategic trade policy, international trade largely involves firms which:
a. enjoy monopolistic power in the domestic market. b. has a high initial cost of production. c. pursues economies of scale. d. experiences diseconomies of scale. e. generates adequate employment in the domestic economy.
A public good is a good or service for which consumption by one person makes consumption by others impossible.
Answer the following statement true (T) or false (F)