If there is a decrease in foreign demand for U.S. goods due to a recession in Europe
A) the U.S. aggregate demand will shift right.
B) the U.S. aggregate demand will shift left.
C) the U.S. aggregate demand will not be affected.
D) the U.S. aggregate demand will become steeper.
B
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In the figure above, both Joe and Jill initially produce at point A. If Joe and Jill realize that they each possess a comparative advantage, which outcome can we expect?
A) Joe will specialize in shirts and Jill will specialize in pants. B) Joe will specialize in pants and Jill will specialize in shirts. C) Joe and Jill each will be able to consume more than 2 shirts and 2 pairs of pants. D) Both answers B and C are correct.
Under an emissions tax program, the government sets ____; under an emissions permits program, the government sets ____
a. the price of the right to pollute; the price of the right to pollute b. the price of the right to pollute; the permitted total quantity of pollution c. the permitted total quantity of pollution; the price of the right to pollute d. the permitted total quantity of pollution; the permitted total quantity of pollution