One of the reasons why we have several competing theories of international trade flows is difficulty economists encounter in devising and carrying out precise tests of trade theories
Indicate whether the statement is true or false
TRUE
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A payoff matrix is a table listing the expected economic profit resulting from different possible strategies
a. True b. False
According to the Keynesian view, the prolonged unemployment of the Great Depression:
a. was surprising because Keynesians believed that wage rates would decline and direct the economy to full employment. b. was surprising because Keynesians believed that lower interest rates would direct the economy to full employment. c. resulted because the total expenditures on goods and services were less than the full-employment rate of output. d. resulted because the federal government ran large budget deficits during the 1930s.
Refer to Figure 10.2. Which line represents wealth?
A. b
B. h
C. f + i
D. g
Suppose that the equilibrium price in the market for widgets is $5 . If a law increased the minimum legal price for widgets to $6, producer surplus
a. would necessarily increase even if the higher price resulted in a surplus of widgets. b. would necessarily decrease because the higher price would create a surplus of widgets. c. might increase or decrease. d. would be unaffected.