How do exports affect sellers' producer surplus?
What will be an ideal response?
Producer surplus increases. It increases because exports raise the price of the good being exported, so sellers produce more of the good and hence their producer surplus increases.
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If unemployment is above the natural rate of unemployment, then potential GDP is:
. Equal to the GDP gap b. Greater than actual GDP c. Less than actual GDP d. Equal to actual GDP
Refer to Table 3-34. For which good(s) does Indonesia have a comparative advantage
a. bananas but not rice. b. rice but not bananas. c. nether rice nor bananas. d. rice and bananas.
Economists will often argue that an individual trade barrier designed to help a particular industry will work even though on net it won't help the economy as a whole. Explain what this means
What will be an ideal response?
Behavioral economists have found that people ________, and this leads to irrational decisions.
A. often undervalue opportunity costs B. often forget money is fungible C. often forget to ignore sunk costs D. All of these statements are correct.