Despite the long-term mutual gains from international trade, in the short run
A. particular firms, industries, and groups of workers can be harmed substantially by imports.
B. international trade is usually inflationary.
C. countries must learn to be self-sufficient.
D. most countries realize mutual net losses.
A. particular firms, industries, and groups of workers can be harmed substantially by imports.
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Using Scenario 2 suppose Susan has eliminated two of the answers but is unsure of which of the remaining three answers are correct. Determine whether it is rational for Bill to guess
What will be an ideal response?
The recent increase in popularity of professional basketball has resulted in
a. a decrease in the price of tickets to basketball games b. an increase in the price of professional basketball tickets c. increased competition among pro basketball teams d. a rise in the price of college basketball tickets e. the bankruptcy of some pro basketball teams
If firms are competitive, then labor-market discrimination
a. cannot exist in either the short run or the long run. b. will be more of a problem than if the market were monopolistic or imperfectly competitive. c. likely will not be a long-run problem unless customers exhibit discriminatory preferences or government maintains discriminatory policies. d. likely will be more of a problem in the long run than in the short run due to the zero-profit condition that characterizes long-run equilibrium for competitive firms.
Recall the Application about the Fed's response to the collapse of the investment house Bear Stearns as well as its handling of the 2008 financial crisis with respect to other financial institutions to answer the following question(s). According to this Application, the Fed increased its lending by hundreds of billions of dollars to financial institutions as a response to the ongoing financial crisis. This increase in loans to financial institutions increased the supply of money in the economy. When the supply of money increases, the money supply curve will:
A. shift to the right, increasing the interest rate. B. shift to the right, decreasing the interest rate. C. shift to the left, increasing the interest rate. D. shift to the left, decreasing the interest rate.