24.) Which of the following is true? A. A county can reduce its unemployment rate by restricting foreign imports and keeping the jobs at home B. Unrestricted free trade lowers wages below their productivity levels C. Exports are beneficial for the economy while imports are harmful D. Trade deficits mean that the combined Current Account and Capital Account are in deficit E. This is another trick question, none of the above is true. 25.) Which of the following is true? A. Interest exists because banks have unfair advantage over borrowers B. Banks increase the spread between what savers received and what borrowers pay for loanable funds. C. Middlemen raise prices, because someone has to pay for their added costs. D. If information were a free economic good the interest rate would exist E. Eugen von Bohm Bawerk proved that economic goods through time are different economic goods 26.) Suppose we are in the auction market for cards. There are 6 sellers and 8 buyers for cars. Assume each buyers and seller values cars in the following way: Maximum Buying Prices Minimum Selling Prices B1 5000 S1 3300 B2 4500 $2 390 B3 4400 $3 4050 B4 4250 $4 4200 B5 4200 $5 4251 B6 3700 $6 4400 B7 3600 $7 5050 B8 3550 What are the limits of price formation? + com/files/exam-hg83s43b2k/ 9/13 Final for ECON 103 with Professor Rustici at GMU: Koofers A. Between $4000 and $4200 B. Between $4201 and $4250 C. Between $3700 and $4000 D. Between $3600 and $4200 E. None of above is the correct range of equilibrium prices 27.) The classical economists rejected subjective value theory because A. They did not understand that value is in the mind B. They did not understand that value is marginal C. They did not understand that value, including labor, determines prices D. They did not understand the paradox of value centered around use-value and exchange value E. None of the above is correct