Gains from trade are measured by:
a. consumer surplus
b. producer surplus.
c. the sum of consumer and producer surplus.
d. producer surplus minus consumer surplus.
c
You might also like to view...
If net exports are positive
A) net foreign investment is also positive. B) net foreign investment is negative. C) capital inflows must be greater than capital outflows. D) Both A and B are correct.
Which of the following statements is FALSE?
A) An increase in income causes an increase in the demand for a normal good. B) An increase in income causes a decrease in the demand for an inferior good. C) A decrease in income causes the demand curve for a normal good to shift to the left. D) An increase in income causes the demand curve for an inferior good to shift to the right.
The structural deficit is defined as
A. that part of the deficit that is so hard to remove that it is never reduced. B. the portion of the budget deficit that occurs because the economy is not at full employment. C. the hypothetical deficit the economy would have under current fiscal policies if the economy were operating near full employment. D. the actual budget deficit that exists in the economy.
From a Keynesian point of view, which is more likely to cause a recession: aggregate demand or aggregate supply. Why?
What will be an ideal response?