When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of a particular good,
a. consumer surplus increases and total surplus increases in the market for that good.
b. consumer surplus increases and total surplus decreases in the market for that good.
c. consumer surplus decreases and total surplus increases in the market for that good.
d. consumer surplus decreases and total surplus decreases in the market for that good.
a
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For a monopolist, the profit-maximizing level of output occurs where
A) MR = MC. B) MC = price. C) MR = AC. D) MC = 0.
In the IS-LM Model, assuming downward sloping IS curve and upward sloping LM curve; increase in consumers' wealth is going to
A) cause a movement along the IS curve. B) cause a rightward shift of the IS curve. C) cause a leftward shift of the LM curve. D) cause a rightward shift of the LM curve.