The economic principle that states that individuals or nations can gain by specializing in the production of goods that they produce cheaply and exchanging for other desired goods that they could only produce at a higher cost is
What will be an ideal response?
the law of comparative advantage
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In the contemporary U.S. economy, the best example of fiat money would be
A) coins issued by the U.S. Treasury. B) deposits at all depository institutions. C) deposits at commercial banks, but not deposits at other depository institutions. D) Federal Reserve Notes.
In spite of having no natural resources, a country like _____ was able to make itself one of the wealthiest countries in the world because it allowed private ownership
a. India b. Poland c. Hungary d. Hong Kong e. China
A decrease in the price level in Japan will shift the U.S. aggregate demand curve outward
a. True b. False Indicate whether the statement is true or false
Answering the For Whom to Produce question means that:
A. society is determining the size of the economic pie, B. scarcity no longer restricts production. C. society must have a method to decide who will be rich and who will be poor. D. an economy is selecting among its resources for production.