If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,
a. the country will be an exporter of the good.
b. the country will be an importer of the good.
c. the country will be neither an exporter nor an importer of the good.
d. Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the good, or neither.
a
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What factors can lead the real wage rate to be above its full-employment equilibrium level?
What will be an ideal response?
For the perfectly competitive broccoli producers in California, the market demand curve for broccoli is
A) a horizontal line. B) downward sloping. C) nonexistent. D) upward sloping. E) the same as the demand curve each firm faces.
Since 1950, the balance of trade for United States has
A) gone from a surplus to a deficit. B) gone from a deficit to a surplus. C) remained constant. D) gone from a small deficit to a larger deficit.
A risk-seeker is likely to:
A. buy a government bond instead of a stock. B. put money in a savings account instead of investing in a start-up company. C. invest in a start-up company instead of putting his money under his mattress. D. put his money under his mattress instead of buying company stock.