In the above figure, the economy is initially at point B. Then the price level falls by 10. The wealth effect will help
A) move the economy to point A.
B) move the economy to point C.
C) move the economy to point D.
D) keep the economy to point B.
A
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Without specialization countries would have ________ goods.
A. the same amount of B. more C. fewer D. new
Suppose that elimination of tariffs on agricultural products means that 1,000 farm workers lose jobs that pay an average of $20,000 per year
At the same time, because of the importation of relatively cheaper foreign vegetables, 150 million consumers save $2 per year on their grocery bills. a. What is the total income lost by farm workers because of the free trade? b. What is the total dollar amount saved by all consumers combined? c. Which is greater, the lost income or the consumer savings? Do the benefits of free trade outweigh the costs in this simple example? d. Which group is most likely to become politically involved over the issue of removing the tariffs, the farm workers or the consumers? Why?
Why is it a bad business practice to assume that raising prices will lead to increases in total revenue?
What will be an ideal response?
The presence of information and transactions cost result in all of the following EXCEPT:
A) reduced efficiency of financial markets. B) higher returns for savers C) some funds not being lent at all D) borrowers need to pay more for funds