Consider two individuals — Howard and Mai — each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases?
a. Howard is very good at knitting sweaters and at cooking tasty food, but Mai's skills in both of these activities are very poor.
b. Howard is very good at knitting sweaters and at cooking tasty food; Mai is very good at knitting sweaters, but she knows nothing about cooking tasty food.
c. Howard's skills in knitting sweaters are fairly good, but his skills in cooking tasty food are fairly bad; Mai's skills in knitting sweaters are fairly bad, but her skills in cooking tasty food are fairly good.
d. Howard's skills are such that he can produce only sweaters, and Mai's skills are such that she can produce only tasty food.
a
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Answer the following statement(s) true (T) or false (F)
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The monetary base is $1,000 billion and the money multiplier is 5.5. What is the size of the money supply?
What will be an ideal response?
The arguments of Kessel and Alchien (1959) on the terms of trade and the question of "who paid for the Civil War (1861–1865)" conclude that 40 percent of the war's burden fell on
(a) those who exported manufactures. (b) those who purchased imports. (c) farmers alone. (d) the economy as a whole.
Total government revenues in the United States are about _____ percent of GDP
a. 25 b. 17 c. 45 d. 30