In the classical model, when an open economy has balanced trade, Say's law does not hold
a. True
b. False
B
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A monopolist faces a demand curve that is equal to:
a. the demand curve faced by perfectly competitive producers. b. the market demand curve. c. the monopolist's own marginal cost curve. d. the monopolist's own marginal revenue.
What happens in the secondary market?
A) a corporate financial manager will raise funds for expansion of the firm
B) secondary inputs like electricity are sold
C) newly issued claims are sold by the borrowing firm to the initial buyer
D) already issued claims are sold from one investor to another
A market equilibrium might not maximize total economic surplus because:
A. in a market equilibrium individuals do not exploit all opportunities for individual gain. B. sometimes goods entail costs and benefits that do not fall on buyers and sellers. C. in a market equilibrium individuals do not act rationally. D. efficiency is not an important social goal.
If the production possibilities frontier of one trade partner ("Country A") is bowed out (concave to the origin), then increased specialization in production by that country will
A) increase the economic welfare of both countries. B) increase the economic welfare of only Country A. C) decrease the economic welfare of Country A. D) decrease the economic welfare of Country B. E) not affect the economic welfare of either country.