Suppose that an increase in the price level of one country drives up prices in other countries. This, in turn, increases the price level in the first country. This process is the
A. price feedback effect.
B. balance of trade effect.
C. J-curve effect.
D. trade feedback effect.
Answer: A
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Markets in which the behavior of the firms theoretically leads to an efficient allocation of resources that maximizes the benefits to consumers given the resources available to consumers are
a. monopolistic competition and oligopoly. b. monopoly and oligopoly. c. monopolistic competition and monopoly. d. perfect competition and perfectly contestable.
The investment and capital spending boom of the late 1990s most likely resulted in a(n)
a. increase in aggregate supply. b. decrease in aggregate supply. c. steeper aggregate supply curve. d. flatter aggregate supply curve.
Suppose that the adult population in some country is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately
a. 29%. b. 18%. c. 24%. d. 6%.
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. California kiwifruit growers had an asymmetric information problem because potential buyers:
A. do not know how much kiwifruit they will need. B. could not tell what the price of the kiwifruit will be. C. could not tell if a kiwifruit was sweet or sour before tasting it. D. All of these