At the height of the 2008 financial crisis, in the time it took a completely full oil tanker to travel from Saudi Arabia to the United States, the price of oil fell nearly $50 per barrel. According to the expected price formulation, that could happen because

Caroline Jahn has a professional degree and is 51 years old. Bob Rubate also has a professional degree and is 29 years old. On average, Caroline most likely earns

a. 75 percent less than Bob b. 7 percent less than Bob c. 75 percent more than Bob d. 7 percent more than Bob e. the same amount as Bob

To obtain the greatest gains from trade, a country should specialize in and ____ those goods for which it has a comparative advantage and ____ those goods for which other countries have a comparative advantage

a. export; export b. import; import c. export; import d. import; export

Consider the monopolistic competition, entry, and exit curve. Which of the following would cause both the perceived demand curve and the marginal revenue curve to shift to the right?

a. Gains induce new firms to leave the industry, causing demand from the original firm to fall. b. Gains induce new firms to leave the industry, causing demand from the original firm to rise. c. Losses induce firms to leave the industry, causing demand from the original firm to fall. d. Losses induce firms to leave the industry, causing demand from the original firm to rise.

The distinction between efficiency and equality can be described as follows:

a. Efficiency refers to maximizing the number of trades among buyers and sellers; equality refers to maximizing the gains from trade among buyers and sellers. b. Efficiency refers to minimizing the price paid by buyers; equality refers to maximizing the gains from trade among buyers and sellers. c. Efficiency refers to maximizing the size of the pie; equality refers to producing a pie of a given size at the least possible cost. d. Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.