The nation as a whole is better off from trade as long as the gains from the winners exceed the losses from the losers
Indicate whether the statement is true or false
TRUE
You might also like to view...
Credit rationing and the financial accelerator are responsible, in part, for
A) the significant volatility of gross private investment. B) the significant volatility of real personal consumption. C) smoothing gross private investment during severe recessions. D) smoothing real personal consumption during expansions.
Constant returns to scale occur when the firm's long-run
a. total costs are constant as output increases. b. average total costs are constant as output increases. c. average cost curve is falling as output increases. d. average cost curve is rising as output increases.
Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. A fully sterilized intervention in the foreign exchange market by the British government is expected to cause
A. Britain to gain official international reserves. B. the British money supply to fall. C. the British money supply to remain unchanged. D. the British money supply to rise.
According to most estimates, the size of the "underground" economy in the United States could be as large as
A. 10% of GDP. B. the "above-ground" economy. C. the state of Rhode Island. D. the economy of China.