When a country imports a good, the ________ to consumers is ________ the ________ to producers
A) loss; smaller than; gain
B) loss; larger than; gain
C) gain; smaller than; loss
D) gain; equal to; loss
E) gain; larger than; loss
E
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
If a nation is incurring a trade deficit (it is buying more from abroad-importing, than it is selling abroad-exporting), then it is most likely producing beyond the frontier of its production possibilities curve.
Answer the following statement true (T) or false (F)
Which of the following is NOT a reason why the effects of tax cuts on government spending dissipate and each additional change in consumption and income becomes smaller and smaller?
A) Some of the increase in income will be lost through taxation. B) Some of the increase is saved and does not result in an increase in consumer demand. C) Some of the increase in consumption will be an additional demand for imported goods. D) Some of the increase is used for business investment.
In a cartel, firms jointly act as
A. a perfectly competitive firm. B. a monopolistic competitive firm. C. a monopoly firm. D. an oligopolistic firm.