The best estimate of the effect of the euro on trade, according to Richard Baldwin, is a(n):
A) increase of 9%.
B) increase of 235%.
C) fall of 9%.
D) fall of 7%.
Ans: A) increase of 9%.
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Assume there is a simultaneous decrease in the incomes of people in the market for new homes and a decrease in the wages paid to carpenters, plumbers, and electricians
All else constant, we can predict, with certainty, that in the market for new homes the equilibrium: A) quantity of new homes will decrease. B) quantity of new homes will increase. C) price of new homes will decrease. D) price of new homes will increase.
To some economists, the "Great moderation" means:
a. a small change in real wages. b. a low inflation rate. c. a low unemployment rate. d. low output growth variability. e. low money supply growth.
__________is the amount of a product that is offered for sale at all possible prices that could prevail in a market.
Fill in the blank(s) with the appropriate word(s).
Refer to the graph shown, which shows the demand and supply for a new vaccine against the common cold. Once vaccinated, a person cannot catch a cold or give a cold to someone else. If government does not subsidize the production of this vaccine:
A. the number of workers hired to produce the vaccine will be less than the socially efficient level. B. the vaccine will be overproduced because consumers will not take into account the fact that many of their neighbors and co-workers will consume the vaccine. C. the firm producing the vaccine will use too much capital in producing the vaccine. D. no positive externality can be created.