The specialization in production made possible by the use of money to avoid barter is an illustration of the:
A. cost-benefit principle.
B. principle of increasing opportunity cost.
C. principle of comparative advantage.
D. scarcity principle.
Answer: C
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What will be an ideal response?
Suppose that the Bank of Japan buys yen-denominated assets with U.S. dollar assets. Everything else held constant, this transaction will cause ________ in the foreign assets held by the Federal Reserve and ________ in the U.S. monetary base
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). As a result of free trade the domestically produced quantity would
a. fall to Q1.
b. rise to Q2.
c. fall to Q3.
d. rise to Q4.
The nation of Zambonia experiences the same rate of population growth every year. If the population of Zambonia doubles every 35 years, then what is the approximate annual rate of population growth?