When we assume that an economy is small and that world prices will not be affected by its engaging in international trade, we are said to be making the:
A) partial equilibrium assumption.
B) all other things equal assumption.
C) small country assumption.
D) insignificance assumption.
Correct Answer:
Verified
Q1: The production possibilities frontier is typically drawn
Q2: The following is a property of indifference
Q3: If an economy insists on remaining completely
Q5: According to the general equilibrium PPF/Indifference curve
Q6: The economy of Tinyland is depicted using
Q7: Exports are:
A) the cost of acquiring imports.
B)
Q8: In the case of free trade, a
Q9: Suppose an economy is perfectly competitive, production
Q10: The general equilibrium model of international trade
Q11: The small country general equilibrium (PPF/indifference curve)
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