In Exhibit 1, at what quantity and price have all the mutually beneficial opportunities of trade been reached between suppliers and demanders?
a. quantity of four and price of $4
b. quantity of three and price of $5
c. quantity of two and price of $6
d. quantity of one and price of $4
a. quantity of four and price of $4
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The U.S. outsourcing debate reminds us that:
a. International trade is a zero-sum game. b. Outsourcing provides few, if any, benefits to the nation from which outsourcing occurs. c. Outsourcing is a way for companies to transform fixed costs into variable costs. d. All of these statements are correct.
When studying how some event or policy affects a market, elasticity provides information on the
a. equity effects on the market by identifying the winners and losers. b. magnitude of the effect on the market. c. speed of adjustment of the market in response to the event or policy. d. number of market participants who are directly affected by the event or policy.
The marginal benefit of a typical activity
A. decreases as you do more of the activity. B. stays the same if the cost of doing the activity stays the same. C. can never be negative. D. increases as long as the activity has any value to you.
Other things being equal, an increase in the rate of interest causes a(n):
A. upward movement along the demand for money curve. B. downward movement along the demand for money curve. C. rightward shift of the demand for money curve. D. leftward shift of the demand for money curve.