If price and quantity are not at their equilibrium positions, then
A. government must intervene.
B. a move to another position will help everyone.
C. it is possible to reallocate so that some people are better off without harming others.
D. a move to another position will not hurt anyone.
Answer: C
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If the price of a truck in the United States is $18,000, and the exchange rate between the dollar and the Argentine peso falls from 10 pesos to 8 pesos per dollar, then the price of the American truck in Argentina will
A. fall. B. remain the same. C. rise. D. be irrelevant, because the Argentine government will impose restrictions on imports from the United States.
The crowding-out effect is small when firms are ______.
a. pessimistic about the future b. optimistic about the future c. considering sizable future investment d. operating at full-capacity