According to the graph shown, if this economy were to engage in free trade, the good would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. be imported.
B. be exported.
C. no longer be produced domestically.
D. not be imported or exported and only be produced domestically.
A. be imported.
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A simultaneous increase of government purchases by $50 billion and a tax hike of $50 billion should stimulate the economy by $50 billion.
Answer the following statement true (T) or false (F)
The best example of a transfer payment would be ___.
A. govenment investment B. government purchases C. government giving funds to the unemployed D. the government paying its workers
President Salinas of Mexico devised a strategy to restore Mexican growth by encouraging
A) large inflows of foreign capital. B) large increases in domestic savings. C) an expansion of import substitution industrialization policies. D) more government ownership of industrial firms.
Total revenues reach a maximum when
A) demand is elastic. B) demand is inelastic. C) demand is unit-elastic. D) price elasticity is at a minimum.