The market for a particular good is more likely to be local
a. the lower the cost of transporting the good and the greater the ease of communication between buyers and sellers
b. the higher the cost of transporting the good and the greater the ease of communication between buyers and sellers
c. the lower the cost of transporting the good and the greater the ease of determining the good's quality
d. the lower the cost of transporting the good and the more difficult the communication between buyers and sellers
e. the higher the cost of transporting the good and the more difficult the communication between buyers and sellers
E
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Which of the following is infrastructure?
a. IBM computer plant. b. Training and education. c. Services of doctors. d. None of these.
Exhibit 17-2 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-2, if people behave according to rational expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the economy to move:
A. directly from E1 to E3 and then remain at E3. B. directly from E1 to E2 and then remain at E2. C. from E1 to E2 initially and then eventually move back to E1. D. from E1 to E2 initially and then eventually move to E3.