Figure 17-1
In , in the absence of trade, the domestic price of shoes would be Pn. If the United States moved from a no-trade situation to free trade, which of the following would happen?
a.
The domestic price of shoes would rise, and domestic consumption would fall.
b.
Both the domestic price of shoes and domestic consumption would rise.
c.
Both the domestic price of shoes and domestic consumption would fall.
d.
The domestic price of shoes would fall, and domestic consumption would rise.
d
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
When a firm does more of something, it gets better at it. This learning-by-doing is:
A. called the principle of natural progression. B. a source of diseconomies of scale. C. a source of economies of scale. D. called "spreading the overhead."
At the Larson Bakery the marginal products of the first, second, and third sales clerks are 30, 27, and 21 customers served, respectively. The total product (number of customers served) of the first two sales clerks is
A. 6. B. 17. C. 57. D. 78.
An open market purchase of securities by the Fed
A) increases banks' reserves and decreases banks' securities.
B) decreases banks' reserves and increases banks' securities.
C) decreases banks' total assets.
D) involves a bank purchasing government securities from the Fed.