Refer to the figure above. Which of the following explains the impact on the domestic buyers and sellers when the country opens to free trade?
A) Both the sellers and the buyers are made worse off.
B) Both the sellers and the buyers gain.
C) The domestic firms lose but the buyers gain.
D) The domestic firms gain but the buyers lose.
D
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The economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a minimum wage:
a. The minimum wage law causes unemployment. b. A minimum wage law benefits some groups and hurts others. c. In some cities such as San Francisco and New York, it would be impossible for low-skilled workers to live comfortably in the city without minimum wage laws. d. The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses. Which of the consequences above are positive statements and which are normative statements? A) a, b, and c are positive statements and d is a normative statement. B) a and b are positive statements, c and d are normative statement. C) Only a is a positive statement, b, c, and d are normative statements. D) a and c are positive statements, b and d are normative statements.
Refer to the graph shown. Expansionary fiscal policy shifts the aggregate demand curve from:
A. AD0 to AD2 whether or not crowding out occurs. B. AD0 to AD2 but then back to AD1 if crowding out occurs. C. AD0 to AD2 but then out to AD3 if crowding out occurs. D. AD2 to AD1 and then from AD1 to AD0 if crowding out occurs.