If the world price is below the domestic "no-trade" equilibrium price, then with international trade:
a. the domestic shortage can be eliminated by rationing.
b. the domestic surplus can be consumed at home.
c. the domestic surplus can be exported to the rest of the world.
d. the domestic quantity demanded is equal to that supplied by the world.
e. the domestic shortage can be met by foreign imports.
e
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Demand for a good is inelastic if:
A. total revenue decreases when price increases. B. the quantity effect outweighs the price effect of a price increase. C. the absolute value of price elasticity is greater than 1. D. total revenue increases when price increases.
Construction workers at times face high rates of unemployment because their work is both seasonal and subject to wide swings over the business cycle
a. True b. False Indicate whether the statement is true or false
The real interest rate is defined as the:
a. actual interest rate. b. fixed-rate on consumer loans. c. nominal interest rate minus the inflation rate. d. expected interest rate minus the inflation rate.
When judging the competitiveness of markets by the behavior of firms in that market, one is using the:
A. "judgment by structure" criteria. B. "judgment by antitrust" criteria. C. "judgment by performance" criteria. D. "judgment by merger" criteria.