Which of the following statements about the European Union (EU) is true?
A. All members of the EU use a common currency (the euro).
B. The EU has abolished most trade barriers among participating countries, and has common
tariffs applied to non-EU goods.
C. The EU has eliminated most barriers to the trade of goods and services among
participating nations but largely restricts the movement of labor and capital.
D. Trade within the EU is liberalized, but EU nations set most of their own policies with regard
to trade with non-EU nations.
B. The EU has abolished most trade barriers among participating countries, and has common
tariffs applied to non-EU goods.
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If both the supply and demand curves shift to the right, then we can conclude that there will be
A. an increase in the equilibrium quantity sold and an increase in the equilibrium price. B. a decrease in the equilibrium quantity sold and a decrease in the equilibrium price. C. an increase in the equilibrium quantity sold and a decrease in the equilibrium price. D. an increase in the equilibrium quantity sold and an uncertain effect on the equilibrium price.
If citizens expect to bear more of the burden for their own health care and retirement costs in the future, then we would expect their:
A. demand for loanable funds further right than it would otherwise be. B. demand for loanable funds further left than it would otherwise be. C. supply of loanable funds further right than it would otherwise be. D. supply of loanable funds further left than it would otherwise be.
Government intervention in the economy:
A.) Always fixes macroeconomic market failures. B.) Always fixes microeconomic market failures. C.) Always makes the economy worse off. D.) May fix market failures or make the economy worse off.
In the long run, competitive firms MUST be profit maximizers because if they do not maximize profits,
A) they will not survive. B) they will not be price takers. C) they will attract entry. D) the profits that they do earn will only cover variable costs.