In a situation of free trade
a. countries with comparative advantage will export more than countries with comparative disadvantage import.
b. the total quantity of an item exported will be greater than the total quantity imported.
c. importing countries will always produce some good, so that total quantity imported is less than total quantity exported.
d. the total quantity of an item exported will equal the total quantity imported.
d
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In the above figure, which point corresponds to an increase in human capital?
A) Figure A B) Figure B C) Figure C D) Figure D
The Stackelberg model is more appropriate than the Cournot model in situations where
A) there are more than two firms. B) all firms enter the market simultaneously. C) one firm makes its output decision before the other. D) firms will be likely to collude.
On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. Suppose that the Minnesota State Park Service institutes a variable fee structure. On weekdays when the picnic areas get little use, the fee is zero. On normal weekends, the fee is $8 per person. On holiday weekends, the fee is $14 per
person. The fee system corrects a problem known as the a. Coase theorem. b. free rider problem. c. Tragedy of the Commons. d. public goods problem.
According to the AS/AD model, a reduction in the money supply is appropriate:
A. when saving equals investment. B. when saving is greater than investment. C. whatever the level of saving and investment. D. when saving is less than investment.