We can expect deviations from PPP because of
A) quotas and tariffs.
B) transportation costs.
C) differentiated goods.
D) All of the above.
D
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A change in tastes for U.S. produced goods will
A) shift both the aggregate demand curve and the long-run aggregate supply curve. B) shift the aggregate demand curve. C) shift the short-run aggregate supply curve. D) shift the long-run aggregate supply curve.
A positive externality is present whenever: a. the social marginal benefit of an activity exceeds the private marginal benefit. b. the private marginal benefit of an activity exceeds the private marginal cost. c. the social marginal cost of an activity exceeds the private marginal cost
d. none of the above.
Liberalism is the political philosophy espoused by
a. Robert Nozick. b. John Stuart Mill. c. John Rawls. d. Jeremy Bentham.
Suppose that the value of the short-run absolute elasticity of demand for a good is 0.4. Then, we know the long-run absolute price elasticity of demand will be
A) 0. B) greater than 0.4. C) elastic. D) less than 0.4.