When a nation imports a good or service, the nation's consumer surplus ________, its producer surplus ________, and its total surplus ________
A) increases; decreases; increases
B) increases; decreases; decreases
C) increases; increases; increases
D) decreases; decreases; decreases
E) decreases; decreases; increases
A
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If the elasticity of supply of labor is low and the elasticity of demand for labor is high, then workers pay most of the Social Security tax levied on labor
Indicate whether the statement is true or false
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
A) The fact that price exceeds marginal cost B) Excess capacity C) Product diversity D) The fact that long-run average cost is not minimized E) all of the above
Microeconomics is defined as that part of economic analysis that
A. studies the behavior of the economy as a whole. B. studies individual decision making by households and firms. C. concerns aggregate production and consumption. D. includes the problems of inflation and unemployment.
Another name for "current account transactions" is
A) "capital account transactions." B) "investment income." C) "net transfers received." D) "checking account transactions." E) "transactions above the line."