Mutually beneficial international trade between two countries depends on
a. each country having an absolute advantage in the production of a different good
b. one country being worse (requiring more resources) than the other in the production of every good
c. at least one country having a zero opportunity cost in the production of at least one good
d. one country being relatively better at producing a good (which makes the other country relatively worse at it)
e. one country being relatively better at producing all goods
D
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A firm's objective behind charging different prices to different consumers for the same good is to:
A) enhance goodwill. B) enhance its profits. C) enhance social surplus. D) enhance its market power.
Refer to Figure f. A benefit function is plotted in Figure f. The letter B represents the:
A. risk premium of the consumption bundle.
B. expected utility of the consumption bundle.
C. certainty equivalent of the consumption bundle.
D. expected consumption.
If expansionary fiscal policies in theUS lead to increased budget deficits what will happen to real interest rates in the US and the value of the dollar?
a. increase; increase b. increase; decrease c. no change; decrease d. decrease; increase e. decrease; decrease
In a closed economy, public saving plus private saving is equal to
A) the budget deficit. B) the budget surplus. C) taxes minus transfers. D) investment.