The above figure shows the supply and demand curves for rice in the U.S. and in Japan. Assume there is no trade between the two countries. If bad weather causes the supply curves in each country to shift leftward by the same amount, then
A) the price will increase the same amount in both countries.
B) the price will decrease the same amount in both countries.
C) the price will increase more in Japan than in the U.S.
D) the price will decrease more in Japan than in the U.S.
C
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In the decades leading to the Civil War __________ supported high protective tariffs.
A. both the North and the South B. neither the North nor the South C. only the North D. only the South
Refer to the figure above. If this were a voluntary restraint agreement, the welfare costs to the importing country would be
A) $14,000. B) $18,000. C) $38,000. D) $60,000.
In the aggregate production function, the symbol "A " represents an index of how efficiently the economy transforms capital and labor into real GDP. "A" measures the influence
A) of any factor that determines real GDP. B) of the quantities of capital and labor that determine real GDP. C) of any factor that determines real GDP other than the quantities of capital and labor. D) of the quantities of capital and labor that determine real GDP, holding other factors constant.
A shift to a more expansionary monetary policy will
a. help bring inflation under control. b. exert a stabilizing impact on the economy if the effects of the policy are felt during an economic downturn. c. exert a stabilizing impact if the effects of the policy are felt when the economy is operating at its full-employment capacity. d. reduce the natural rate of unemployment.