Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will
a. rise, and the wages of skilled labor will fall.
b. fall, and the wages of skilled labor will rise.
c. rise, and the wages of skilled labor will rise.
d. fall, and the wages of skilled labor will fall.
a
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If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's consumers end up
A) paying a higher price for the good than they otherwise would. B) paying a lower price for the good than they otherwise would. C) consuming more of the good than they otherwise would. D) having a higher standard of living than they otherwise would.
Refer to the information provided in Figure 6.9 below to answer the question(s) that follow.
Figure 6.9Refer to Figure 6.9. The marginal utility of the second video game rental is
A. 8. B. 10. C. 25. D. 40.
Determining accurate estimates of the government spending multiplier is difficult because
A) the total amount of debt also impacts the rate of inflation B) separating the impacts of debt versus deficits is difficult C) determining the expectations of households regarding future debt obligations is difficult D) estimating the average interest rate paid on the total amount of debt is difficult
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary