The principle of comparative advantage implies that
A) only wealthy countries ultimately can benefit from international trade.
B) every country can benefit from international trade.
C) we should limit the extent to which people specialize.
D) most people are harmed by trade.
B
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Which of the following will always be true when an economy is in long-run equilibrium?
a. The level of prices will be constant (that is, inflation will be zero). b. Actual output will exceed the potential output. c. The actual rate of unemployment will be less than the natural rate of unemployment. d. The output of the economy will correspond with the full-employment output.
If the U.S. price level increased relative to price levels in foreign countries, what would be the impact on domestic aggregate supply and aggregate demand curves?
a. the aggregate supply curve would shift outward and the aggregate demand curve would remain unchanged b. the aggregate supply curve would shift inward and the aggregate demand curve would remain unchanged c. the aggregate demand curve would shift outward and the aggregate supply curve would remain unchanged d. the aggregate demand curve would shift inward and the aggregate supply curve would remain unchanged e. the domestic aggregate demand and supply curves would remain unchanged
Air, an open-access resource, cannot be apportioned into individual private property rights because no individual can easily access the resource and then easily allow designated individuals to use the resource
Indicate whether the statement is true or false
A government-imposed price ceiling has what effect on efficiency?
A. Consumer and producer surplus increases. B. Producer surplus increases. C. There is little dead weight loss. D. Consumer surplus increases.