For any country, if the world price of copper is lower than the domestic price of copper without trade, that country should
a. export copper.
b. import copper.
c. neither export nor import copper, since that country cannot gain from trade.
d. neither export nor import copper, since that country already produces copper at a low cost compared to other countries.
b
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Government purchases
a. are only weakly related to aggregate income b. include spending on goods and services plus transfer payments c. are inversely related to aggregate income d. are inversely related to the price level e. are inversely related to the interest rate
Summing up governmental intervention in the pricing of goods, we can say it
a. occurs only under wartime conditions b. has grown considerably during the past two decades and now characterizes the majority of our markets c. has peaked in the 1970s and now has only a shadow of its former influence d. occurs in relatively few markets because most market prices are determined by the forces of demand and supply e. occurs only in the production of farm goods