Jennifer trades her autographed picture of Hulk Hogan for Alyssa's autographed picture of Pee-wee Herman, and both are happy with the exchange. This is an example of
A. voluntary exchange.
B. Pareto optimality.
C. general equilibrium.
D. partial equilibrium.
Answer: A
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Suppose we have an economy for which G = 300, T = 240, S = 80, I = 45, and imports = 40. Exports must be
A) 25. B) 40. C) 15. D) 65. E) -25.
According to the graph shown, if this economy were to open to trade, domestic producers would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. transfer surplus in area BC to consumers.
B. transfer surplus in area BCD to foreign producers.
C. lose surplus in area BCD to foreign consumers.
D. receive additional surplus of BCD.
In the U.S. economy, foreigners participate in:
A.) The factor market only. B.) The product market only. C.) Both the product and factor markets. D.) Foreigners do not participate in the U.S. economy.
If government spending increases, then the IS curve shifts to the right.
Answer the following statement true (T) or false (F)