If the world price of steel is greater than the U.S. "no-trade" domestic equilibrium price of steel, the United States:
a. will not produce steel.
b. will demand steel from the rest of the world.
c. will supply steel to the rest of the world.
d. will not trade steel.
e. will have a shortage of steel in the domestic market.
c
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“OPEC is exploiting the United States by selling us oil at inflated prices.” Agree or disagree.
What will be an ideal response?
How is the public debt calculated?
A. By subtracting the government's total liabilities from its total assets B. By cumulating the annual government purchases over time C. By subtracting current government spending from current government tax revenues D. By cumulating the annual difference between tax revenues and government spending over the years
Referring to a production possibilities curve and the goods being compared, depict the economic event. Suppose the United States was at full employment in 2003 just before invading Iraq. Although the war was won quickly, winning the peace took a decade (guns vs. butter).
A. A movement from a point on or near the curve to a point inside the curve B. A shift in the entire curve to the right (outward) C. A shift in the entire curve to the left (inward) D. A movement along the curve
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower