If the U.S. government changes its policy toward Cuba by allowing U.S. firms to export their goods to Cuba, the
a. Cuban aggregate expenditure curve will shift upward and the equilibrium level of national income in the U.S. will decrease
b. Cuban aggregate expenditure curve will shift downward and the equilibrium level of national income in Cuba will decrease
c. Cuban aggregate expenditure curve will shift upward and the equilibrium level of national income in Cuba will increase
d. U.S. aggregate expenditure curve will shift downward and the equilibrium level of national income in the U.S. will decrease
e. U.S. aggregate expenditure curve will shift upward and the equilibrium level of national income in the U.S. will increase
E
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In the long-run equilibrium in perfect competition,
A) producer surplus is positive. B) producer surplus is negative. C) producer surplus is greater than consumer surplus. D) producer surplus is less than consumer surplus.
According to Adam Smith, what is the primary source of a nation's wealth?
A. the amount of gold and silver in the government's possession B. a spirit of cooperation in which people share according to their means C. strong central planning authorities D. the people's ability to produce products and trade in free markets