If countries do not engage in international trade:
A) they give up the ability to specialize in production.
B) worldwide levels of production are lower.
C) the world will be operating inside its production possibilities curve.
D) all of the above are true.
Ans: D) all of the above are true.
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If demand is price inelastic and the price is lowered, which of the following occurs?
A) The quantity sold decreases. B) The total expenditure increases and the total revenue decreases. C) The total revenue of the firms selling the product is unchanged. D) The total revenue of the firms selling the product decreases. E) The total expenditure decreases and the total revenue increases.
If economists calculate the GDP for 2009, using current prices of year 2009, what are they estimating?
(A) Net national product (B) Real GDP (C) Nominal GDP (D) Depreciation