Macroeconomics (Mcgraw-hill Series in Economics) 10th Edition

CHAPTER 1: ECONOMICS AND ECONOMIC REASONING Questions and Exercises 1. Coordination refers to how the three central problems facing any economy are solved. Those three problems are what and how much to produce, how to produce, and for whom to produce. Inevitably, individuals desire more than is available in light of

CHAPTER 10: INTERNATIONAL TRADE POLICY Questions and Exercises 1. Because U.S. trade is a relatively small percent of total output, trade is less important to the United States compared to other countries. Because considering all goods and services produced, U.S. producers face less competition, this suggests that trade policies are less important.

CHAPTER 2 APPENDIX: GRAPHISH: THE LANGUAGE OF GRAPHS 1. See the accompanying graph. 2. See the accompanying graph. a. The relationship is nonlinear because it is curved, not straight. curved, not straight. curved, not straight. b. From 0 to 5, cost declines as quantity rises (inverse relationship). From 5 to 10, cost rises as quantity rises

CHAPTER 2: THE PRODUCTION POSSIBILITY MODEL, TRADE, AND GLOBALIZATION Questions and Exercises 1. In the figure to the right, wadget production is measured on the vertical axis and widget production is measured on the horizontal axis. If the society becomes more productive in its output of widgets, it can produce moreof them, and the end point

CHAPTER 24: ECONOMIC GROWTH, BUSINESS CYCLES, AND UNEMPLOYMENT Questions and Exercises 1. Classicals felt that if the wage level fell, the Depression would end. They saw labor unions as preventing the fall in wages, and they believed that government lacked the political will to break up unions. labor unions as preventing the fall

CHAPTER 25: MEASURING AND DESCRIBING THE AGGREGATE ECONOMY Questions and Exercises 1. A stock concept is the amount of something at a given point in time. A flow concept is an amount over a specific time period. For example, a stock is the amount of water in a reservoir; a flow is

CHAPTER 26: THE SHORT-RUN KEYNESIAN POLICY MODEL: DEMAND-SIDE POLICIES Questions and Exercises 1. According to Keynesians the economy could deviate from its potential because if aggregate demand falls for some unexplained reason, firms would respond by decreasing output and lay off workers, which lowers peoples income. Lower income leads consumers to cut

CHAPTER 26W: APPENDIX A: AN ALEBRAIC PRESENTATION OF THE EXPANDED MULTIPLIER MODEL 1. To determine precisely how much we would need to decrease taxes we must determine what the multiplier is. Assuming all other marginal propensities are zero, the multiplier is 5. The tax cut would initially affect the

CHAPTER 26W: THE MULTIPLIER MODEL Questions and Exercises 1. The multiplier model is more appropriate for large changes in aggregate demand, when the economy tends to be subject to greater feedback effects and is less self-correcting. when the economy tends to be subject to greater feedback effects and is less self-correcting. when the economy

CHAPTER 27: THE CLASSICAL LONG-RUN POLICY MODEL: GROWTH AND SUPPLY-SIDE POLICIES Questions and Exercises 1. Economic growth allows everyone in society, on average, to have more. It generates jobs and increases income and therefore consumption. Costs include pollution, resource exhaustion and depletion of natural habitats. (Other answers are possible.) pollution, resource exhaustion and

APPENDIX: A CLOSER LOOK AT FINANCIAL ASSETS AND LIABILITIES 1. Students gain a financial asset and the government incurs a financial liability. 2. It is a financial asset because it has value due to an offsetting liability of the Federal Reserve Bank. Federal Reserve Bank. Federal Reserve Bank. 3. No. In economic terminology he

CHAPTER 28: THE FINANCIAL SECTOR AND THE ECONOMY Questions and Exercises 1. Money doesn't have to have any inherent value to function as a medium of exchange. All that's necessary is that everyone believes that other people will accept it in exchange for their goods. This is the social convention that gives

CHAPTER 29: MONETARY POLICY Questions and Exercises 1. Contractionary monetary policy shifts the aggregate demand curve to the left. In the short run, this will reduce output andreduce the price level. The long-run effectdepends on where the economy is relativeto potential output. In the graph shown, thecontractionary monetary policy brings theeconomy back to

CHAPTER 3: ECONOMIC INSTITUTIONS Questions and Exercises 1. In a market economy, fluctuations in prices play a role in coordinating individuals wants. Price is the mechanism through which peoples desires are coordinated and goods are rationed. individuals wants. Price is the mechanism through which peoples desires are coordinated and goods are rationed. individuals wants.

CHAPTER 30: FINANCIAL CRISES, PANICS, AND UNCONVENTIONAL MACROECONOMIC POLICY Questions and Exercises 1. The Fed's role as lender of last resort is important because if credit dries up, the entire real economy can come to a halt. The Fed can provide this shortage of short-term credit if no one else will. entire real

CHAPTER 31: DEFICITS AND DEBT CHAPTER 31: DEFICITS AND DEBT Questions and Exercises 1. It follows from the long-run framework because in this framework, deficits are warranted only when government investment is more productive than private investment. When it isnt, surpluses are good because they provide additional saving for an economy. The

CHAPTER 32: THE FISCAL POLICY DILEMMA Questions and Exercises 1. a. No effect. According to the Ricardian equivalence theorem paying for an increase in spending by increasing taxes in the future will not affect the economy because people will decrease their consumption by the same amount that spending increases in order

CHAPTER 33: JOBS AND UNEMPLOYMENT Questions and Exercises 1. The duration of unemployment rose in the 2008/09 recession. The likely cause was that people were unable to find comparable jobs at comparable pay to the onethat they had lost. was that people were unable to find comparable jobs at comparable pay to

CHAPTER 34: INFLATION, DEFLATION, AND MACRO POLICY Questions and Exercises 1. Asset price inflation occurs when the prices of assets rise more than their real value. Asset inflation matters for two reasons: (1) it can indicate whether an economy has exceeded its potential output when goods inflation is held down by globalization

CHAPTER 35: INTERNATIONAL FINANCIAL POLICY Questions and Exercises 1. If a country is running a balance of trade deficit, the amount of goods it is exporting is less than the amount of goods it is importing. This is only one part of the current account, which is the part of the balance

CHAPTER 36: MACRO POLICY IN A GLOBAL SETTING Questions and Exercises 1. Whether it's better to have a high or low exchange rate depends on domestic and international goals. A high exchange rate for the dollar makes foreign currencies cheaper, lowering the price of imports, which benefits domestic consumers but places

CHAPTER 37: STRUCTURAL STAGNATION AND GLOBALIZATION Questions and Exercises 1. In a normal downturn, an economy is expected to recover quickly and return to its potential output to its long-term growth trend. In a structural stagnation, the economy does not expand sufficiently after a recession to return to its long-term growth trend. potential output to

CHAPTER 38: MACRO POLICIES IN DEVELOPING COUNTRIES Questions and Exercises 1. Economic statistics do not take into account the quality of life, including the culture and local social institutions that provide pleasure to individuals in the society. culture and local social institutions that provide pleasure to individuals in the society. culture and local

CHAPTER 4: SUPPLY AND DEMAND Questions and Exercises 1. The law of demand states that quantity demanded falls as price increases; or that quantity demanded rises as price falls. Price is inversely related to quantity demanded because as price rises, consumers substitute other goods whose price has not risen. quantity demanded rises as

APPENDIX: ALGEBRAIC REPRESENTATION OF SUPPLY, DEMAND, AND EQUILIBRIUM 1. a. The tables are shown below: Price (Dollars per gallon) Quantity Demanded (Gallons per year) Quantity supplied (Gallons per year 0 600 -150 1 500 0 2 400 1503 300 3004 200 4505 100 6006 0 750 2 400 1503 300 3004 200 4505 100 6006 0 750 2 400 150 3 300 300 4 200 450 5 100

CHAPTER 5: USING SUPPLY AND DEMAND Questions and Exercises 1. If the equilibrium price and quantity both rose, the simplest cause would be a shift of the demand curve to the right. of the demand curve to the right. of the demand curve to the right. 2. If price fell and quantity remained constant, a possible

Issues to Ponder 1. a. Airways have value because they produce revenue and there are only a limited number of airways in the industry. number of airways in the industry. number of airways in the industry. b. Television networks have incentives to produce high definition television only to the extent that they would receive

CHAPTER 9: COMPARATIVE ADVANTAGE, EXCHANGE RATES AND GLOBALIZATION Questions and Exercises 1. A country does better exporting a good for which it has a comparative advantage and importing goods for which other countries have comparative advantages. and importing goods for which other countries have comparative advantages. and importing goods for which other countries

Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized

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Ans: False AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 10-02 Topic: Varieties of Trade Restrictions Ans: False AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 10-02 Topic: Varieties of Trade Restrictions Ans: False AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium

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Ans: False AACSB: Reflective Thinking Ans: False AACSB: Reflective Thinking Ans: False AACSB: Reflective Thinking 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: False AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 24-03 Topic: Business Cycles and Structural Stagnation Feedback: Business cycles involve short-run fluctuations. Structural stagnation involves long run growth. Ans: False AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 24-03 Topic: Business Cycles

Ans: D AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 24-03 Topic: Business Cycles and Structural Stagnation Ans: D AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 24-03 Topic: Business Cycles and Structural Stagnation Ans: D AACSB: Reflective Thinking Blooms: Remember Difficulty:

Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: B AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 25-03 Topic: Inflation: Distinguishing Real from Nominal Ans: B AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 25-03 Topic: Inflation: Distinguishing Real from Nominal Ans: B AACSB: Reflective Thinking Blooms: Understand Difficulty:

Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 25-03 Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 25-03 Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 25-03 2017 by McGraw-Hill Education. This is

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Ans: B AACSB: Reflective Thinking Blooms: Understand Ans: B AACSB: Reflective Thinking Blooms: Understand Ans: B AACSB: Reflective Thinking Blooms: Understand 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 27-02 Topic: Markets, Specialization, and Growth Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 27-02 Topic: Markets, Specialization, and Growth Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy

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Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 28-01 Topic: The Definition and Functions of Money Feedback: Money's value as a medium of exchange is derived from social convention. Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 28-01 Topic:

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Ans: B AACSB: Analytic Blooms: Apply Difficulty: 03 Hard Learning Objective: 28-02 Ans: B AACSB: Analytic Blooms: Apply Difficulty: 03 Hard Learning Objective: 28-02 Ans: B AACSB: Analytic Blooms: Apply Difficulty: 03 Hard Learning Objective: 28-02 2017 by McGraw-Hill Education. This is proprietary material solely

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: False AACSB: Reflective Thinking Blooms: Remember Ans: False AACSB: Reflective Thinking Blooms: Remember Ans: False AACSB: Reflective Thinking Blooms: Remember 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document

Ans: B AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 29-02 Topic: How Monetary Policy Works in Practice Feedback: The Fed has seven governors, all of whom the president appoints. Ans: B AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 29-02 Topic: How

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Ans: A AACSB: Analytic Blooms: Apply Difficulty: 03 Hard Learning Objective: 29-04 Topic: The Complex Nature of Monetary Policy Ans: A AACSB: Analytic Blooms: Apply Difficulty: 03 Hard Learning Objective: 29-04 Topic: The Complex Nature of Monetary Policy Ans: A AACSB: Analytic Blooms: Apply Difficulty: 03

Ans: False AACSB: Reflective Thinking Blooms: Remember Ans: False AACSB: Reflective Thinking Blooms: Remember Ans: False AACSB: Reflective Thinking Blooms: Remember 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: B AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 03-03 Topic: Demerit Good or Activity Ans: B AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 03-03 Topic: Demerit Good or Activity Ans: B AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy

Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 30-01 Topic: The Central Banks Role in a Crisis Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 30-01 Topic: The Central Banks Role in a Crisis Ans: True AACSB: Reflective Thinking

Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 30-03 Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 30-03 Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 30-03 2017 by McGraw-Hill Education. This is proprietary

Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 31-01 Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 31-01 Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 31-01 2017 by McGraw-Hill Education. This is

Ans: D Ans: D Ans: D 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: D Ans: D Ans: D 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole

Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 33-02 Topic: Unemployment and Potential Output Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 33-02 Topic: Unemployment and Potential Output Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning

Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 33-02 Topic: Unemployment and Potential Output Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 33-02 Topic: Unemployment and Potential Output Ans: C AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning

Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 34-02 Topic: The Costs and Benefits of Inflation Feedback: An example is the lender who lends money but then experiences unexpected inflation. The rate of return on the loan is lower than desired and the borrower

B. 3 percent. C. 5 percent. D. 7 percent. Ans: D AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 34-02 Topic: The Costs and Benefits of Inflation Feedback: Inflation is the difference between nominal wage increases and productivity growth. [QUESTION] Ans: D AACSB: Reflective Thinking Blooms:

Feedback: As the economy moves to the right of the long-run Phillips curve, unemployment rises above the target rate, putting downward pressure on wages and eventually prices. [QUESTION] 112. Inflationary pressures increase when the economy moves: A. to the right of the long-run Phillips curve. B. to

Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for

government. B. supply of dinar that will cause the dinar to lose value unless dinar are bought by the government. C. demand for dinar that will cause the dinar to gain value unless dinar are sold by the government. D. demand for dinar that will cause the dinar to gain

[QUESTION] 107. An expansionary U.S. fiscal policy will: A. decrease the value of the dollar if U.S. interest rates fall enough. B. increase the value of the dollar if U.S. interest rates rise enough. C. increase the value of the dollar if U.S. income and the U.S. price level increase

after the effects of different rates of inflation are eliminated. [QUESTION] 137. Suppose that the rate of inflation in Japan is 1 percent and the rate of inflation in the United States is 3 percent. If the real exchange rate remains constant, the value of the U.S. dollar relative

Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Ans: True AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized

Ans: C AACSB: Analytic Blooms: Analyze Difficulty: 03 Hard Learning Objective: 36-02 Topic: Monetary and Fiscal Policy and the Trade Deficit Ans: C AACSB: Analytic Blooms: Analyze Difficulty: 03 Hard Learning Objective: 36-02 Topic: Monetary and Fiscal Policy and the Trade Deficit Ans: C AACSB: Analytic

Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 37-01 Topic: The Structural Stagnation Hypothesis Feedback: The economy is recovering very slowly. Ans: False AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 37-01 Topic: The Structural Stagnation Hypothesis Feedback: The economy is recovering

Ans: A AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 37-02 Ans: A AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 37-02 Ans: A AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Learning Objective: 37-02 2017 by McGraw-Hill Education. This is proprietary

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This is

Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy Ans: True AACSB: Reflective Thinking Blooms: Remember Difficulty: 01 Easy 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: True AACSB: Reflective Thinking Ans: True AACSB: Reflective Thinking Ans: True AACSB: Reflective Thinking 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,

Ans: C AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 04-03 Ans: C AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 04-03 Ans: C AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 04-03 2017 by McGraw-Hill Education. This is

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: A AACSB: Reflective Thinking Blooms: Understand Ans: A AACSB: Reflective Thinking Blooms: Understand Ans: A AACSB: Reflective Thinking Blooms: Understand 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: A AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 05-02 Topic: Government Intervention: Price Ceilings and Price Floors Ans: A AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 05-02 Topic: Government Intervention: Price Ceilings and Price Floors Ans: A AACSB: Reflective

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This

Ans: True AACSB: Analytic Blooms: Apply Difficulty: 03 Hard Ans: True AACSB: Analytic Blooms: Apply Difficulty: 03 Hard Ans: True AACSB: Analytic Blooms: Apply Difficulty: 03 Hard 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or

Ans: C AACSB: Reflective Thinking Blooms: Understand Difficulty: 02 Medium Learning Objective: 09-03 Topic: Source of U.S. Comparative Advantage Feedback: A trade deficit means that the United States is consuming more than it is producing. The comparative advantage model assumes that there is no trade deficit or surplus.

2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2017 by McGraw-Hill Education. This