International equilibrium occurs if the quantity of imports demanded by one country is equal to the quantity of exports supplied by the other country
a. True
b. False
Indicate whether the statement is true or false
True
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Rank-order the following three gifts in terms of potentially providing the highest utility to the lowest: 1 ) A new video game; 2 ) A gift card to a video game store; 3 ) Cash
A) 1, 2, 3 B) 2, 3, 1 C) 3, 2, 1 D) 1, 3, 2
If the social benefit is greater than the private benefit in a particular market, then the private equilibrium will be at a quantity:
A. equal to the socially optimal level. B. greater than or less than the socially optimum level, depending on the size of the external costs. C. greater than the socially optimal level. D. less than the socially optimal level.
Say a consumer is choosing between red wine and white wine. The price of red wine is 20 and the price of white wine is 10. If the marginal rate of substitution is 1, and if red wine is on the horizontal axis then the consumer is purchasing:
A. More than what her income would allow B. Too much white wine C. Just the right amount of both goods D. Too much red wine
Which of the following statements is not true?
A. Periods of growth below the potential level are periods of high unemployment. B. Periods of growth above the potential level are periods of low employment. C. Periods of growth below the potential level are periods of low unemployment. D. The potential growth rate in the U.S. economy may have fallen following the financial crisis of 2007-2009.