Heartland and Soulland) If trade now opens up between the two economies, we can expect that:
A) Heartland will export drill presses to Soulland and import corn from it.
B) Heartland will export corn to Soulland and import drill presses from it.
C) both countries will export corn and drill presses.
D) both countries will import corn and drill presses.
Answer: B) Heartland will export corn to Soulland and import drill presses from it.
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The short run is a period of time
a. less than one year b. greater than one year c. during which all resources are variable d. during which at least one resource is fixed e. during which at least one resource is variable
Divya owns a small boutique in a busy neighborhood. She has been thinking of expanding her business hours and hiring a sales associate to work evenings and weekends. She sees on the news that the GDP is down and decides to hold off on expanding her business for the time being. Why?
What will be an ideal response?
Monopoly profit
A. equals (price - ATC) times quantity sold. B. equals price times quantity sold. C. exists only in the short run. D. exists because no entry barriers exist.
Refer to the diagrams. Assuming a constant price level, an increase in aggregate expenditures from AE 1 to AE 2 would:
A. move the economy from A to C along AD 1 .
B. move the economy from C to A along AD 1 .
C. increase aggregate demand from AD 1 to AD 2 .
D. decrease aggregate demand from AD 2 to AD 1 .