If Japan and the United States engage in trade, and Japan gains as a result of the trade, does that mean the United States has lost in some manner?
If economic agents engage in voluntary trade, then neither party has been made worse off, and at least one of them has been made better off. Voluntary trade, by definition, is not coercive, and an economist would not expect someone to trade in the expectation of becoming worse off. Instead, economists would expect both parties to gain-although the gains may not be equal in size.
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A rational consumer will always shift a dollar from a good for which the marginal-utility- to-price ratio is lower to one for which the marginal-utility-to-price ratio is higher
Indicate whether the statement is true or false
The short-run aggregate supply line is:
A. upward sloping. B. downward sloping. C. horizontal at the current rate of inflation. D. vertical at the economy's potential output.