An unexpected increase in total spending will cause an increase in GDP:
A. if prices are sticky.
B. if prices are fully flexible.
C. regardless of whether prices are sticky or fully flexible.
D. only if prices are stuck in the long term.
A. if prices are sticky.
Economics
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A country that has absolute advantage in producing all goods does not benefit from trade.
a. true b. false
Economics
Answer the following questions true (T) or false (F)
1. An externality is an example of a market failure. 2. When products that create positive externalities are produced, at the market equilibrium output, the social benefit generated by consuming the product exceeds the private benefit. 3. An external benefit is created when you pursue a college education.
Economics