Equal increases in government spending and taxes will exactly offset each other, leaving the equilibrium level of output unchanged

Competitive offers to buy and sell resources establish money prices, which reflect relative scarcities

A) in all economic systems. B) in any economic system where efficiency is important. C) only when there are no sunk costs to be recovered. D) when resources are privately owned.

Which of the following tools and concepts is useful in the analysis of international trade?

a. total surplus b. domestic supply c. equilibrium price d. All of the above are correct.