Who gains from exports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from exports?
What will be an ideal response?
Producers of the good being exported gain from exports. They gain because the price they receive rises. As a result, they produce more of the good. Consumers of the good being exported lose from exports. They lose because the price they pay rises. As a result, they buy less of the good. The overall economy gains because the gain to producers exceeds the loss to consumers.
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What special roles do the Budget Committees of the House of Representatives and the Senate play in creating fiscal policy?
What will be an ideal response?
The efficient markets hypothesis predicts that an investor
A) will not be able consistently to earn above-normal profits from buying or selling stocks. B) will be able consistently to earn above-normal profits from buying or selling stocks so long as he or she makes use of rational expectations. C) will be able consistently to earn above-normal profits from buying or selling stocks so long as he makes use of adaptive expectations. D) will be able consistently to earn above-normal profits so long as stock prices in general are rising.