The expansion of world output as a result of trade is mainly due to the effects of
A. Specialization according to comparative advantage.
B. Improved terms of trade.
C. Specialization according to absolute advantage.
D. Higher trade barriers.
Answer: A
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The monopolist's outcome happens at a:
A. cost that is equal to a perfectly competitive one. B. lower price than the perfectly competitive one. C. lower quantity than the perfectly competitive one. D. higher quantity than the perfectly competitive one.
When there is a shortage I. there is a tendency for price to increase. II. there is an excess quantity demanded
A) I only B) II only C) both I and II D) neither I nor II
Which of the following would be most likely to induce Congress and the president to conduct expansionary fiscal policy? A significant
A) increase in net exports. B) decrease in investment spending. C) decrease in oil prices. D) increase in consumption spending.
Under current guidelines, the U.S. Department of Justice usually challenges
a. all mergers b. mergers in industries that would have a postmerger Herfindahl index greater than 1,800 c. mergers in industries that would have a postmerger Herfindahl index greater than 1,800 if the Herfindahl index increases by more than 100 points d. mergers in industries that would have a postmerger Herfindahl index greater than 1,000 e. mergers in industries that would have a postmerger Herfindahl index greater than 1,000 if the Herfindahl index increases by more than 100 points