Refer to the scenario above. Which of the following statements is true of the terms of trade of tea for coffee?
A) The terms of trade will lie somewhere below 1/3.
B) The terms of trade will lie somewhere above 2.
C) The terms of trade will lie between 1/3 and 2.
D) The terms of trade will equal zero.
C
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How does each of the following shift the supply of loanable funds and the demand for loanable funds curves? What is the effect of each on the equilibrium real interest rate and equilibrium quantity of loanable funds?
a. Households' disposable incomes increase b. An increase in expected profit
Which of the following statements holds true for eminent domain?
(a) The costs are diverse and the benefits concentrated to those special groups who secured it. (b) It supports rent-seeking where some individuals gain and others lose. (c) The owner of the property secured through eminent domain has no legal recourse. (d) It is well-defined and has been applied throughout U.S. history with consistency and accuracy to support economic growth and development.