An effect of international trade is
A) the increase in the average price of goods as the cost of transportation has to be included.
B) the transmission of ideas around the world.
C) that only countries that have absolute advantage in producing a good can participate.
D) that the United States has a trade surplus.
Answer: B
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Which of the following is an example of a monetary policy?
a. Feds reducing bank lending b. Government decreasing the tax rate c. Government increasing the level of technology d. Decreasing government spending
Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price). If Ingrid finds someone who is willing to sell her a ticket for $70, she should:
A. purchase the ticket because doing so will make her $5 better off. B. purchase the ticket even though doing reduce total economic surplus. C. not purchase the ticket because it is overpriced. D. not purchase the ticket because the cost to the scalper was only $60.
If you earned $10-an-hour in 2005 when the CPI was 100, and you earn $11-an-hour today when the CPI is 120, then your real wage rate has _____ since 2005.
Fill in the blank(s) with the appropriate word(s).
Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, if the price is $2, the market will
A. Experience a surplus of 30 units. B. Experience a surplus of 56 units. C. Experience a shortage of 22 units. D. Be in equilibrium.