Free trade benefits the nation as a whole but may hurt specific industries and workers.
Answer the following statement true (T) or false (F)
True
Because of the benefits of specialization and free trade, all countries benefit because output is increased and resources are used more efficiently. However, import-sensitive industries that are hurt by cheaper imports suffer.
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If the price of coal, a close substitute for oil, decreases, then the
A. supply curve for oil will shift to the right. B. demand curve for oil will shift to the right. C. equilibrium price and quantity of oil will not change. D. demand curve for oil will shift to the left. E. supply curve of coal will shift to the left.
Economic growth can be illustrated by: a. a movement along the production possibilities curve
b. a movement from a point on the production possibilities curve to a point inside the production possibilities curve. c. an inward shift of the production possibilities curve. d. an outward shift of the production possibilities curve.
Which of the following statements about the price elasticity of demand is correct?
a. The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases. b. Price elasticity of demand reflects the many economic, psychological, and social forces that shape consumer tastes. c. Other things equal, if good x has close substitutes and good y does not have close substitutes, then the demand for good x will be more elastic than the demand for good y. d. All of the above are correct.
Which of the following is inconsistent with Keynesian models of business cycles?
a) wage and price stickiness b) coordination failure c) multiple equilibria d) efficient market allocation e) the need for stabilization policy