A permanent reduction in international trade barriers would
A) decrease long-run aggregate supply.
B) increase long-run aggregate supply.
C) decrease aggregate demand.
D) increase aggregate demand.
B
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When economists use the term Ceteris paribus, they are indicating that:
a. the relationship between two economic variables cannot be determined. b. the analysis is true for the individual but not for the economy as a whole. c. all other variables except the ones specified are assumed to be constant. d. their conclusions are based on normative economics rather than positive economic analysis.
Using Figure 1.7, we know the production of 5 units of soda and 2 units of pizza is 
A. impossible because we have the resources but do not have the technology. B. impossible because we have the technology but do not have the resources. C. possible, but there would be unemployed resources. D. possible, but only if all resources were fully employed.