If the world price for good A is above the domestic price for good A without trade, then the price the consumer pays for good A will ________ and the price the producer receives for good A will ________ with trade.
A. increase; increase
B. decrease; increase
C. decrease; decrease
D. increase; decrease
Answer: A
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When an input represents a larger proportion of a firm's total costs, then
A) demand for the input will tends to be less elastic. B) the input demand will not vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) demand for the input will tends to be more elastic.
Post deregulation, airlines attempted to maintain their earlier profit levels by instituting price discrimination in such forms as advance purchase ticket restrictions and frequent-flyer mileage programs. These methods generally did not succeed in maintaining those profit levels
Indicate whether the statement is true or false
The horizontal intercept of the budget line is:
A. M/PY. B. -PX/PY. C. M/PX. D. PYY.
The money aggregate M2 includes:
A. savings deposits but not money market deposit accounts. B. M1. C. large denomination time deposits. D. stock and bond mutual fund shares.