An economic agreement between countries to allow free trade in goods, services, labor, and financial capital between members while having a common external trade policy is called:
a. an economic union.
b. a common market.
c. a trade forum.
d. a free trade agreement.
b. a common market.
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A student has a chance to see Katy Perry in concert. The student also has a major economics exam the next day. If the student goes to the concert,
A. attending the concert may impact her grade on the economics exam. B. one opportunity cost of attending the concert is the time that could have been used to study. C. this decision involves a trade-off. D. All of the responses are correct.
A currency swap can
A) make foreign goods more expensive in the domestic market. B) make the foreign exchange rate more volatile over time. C) reduce foreign exchange risk. D) make domestic goods more expensive in foreign countries.
When workers are paid on a piece-rate basis, an employer must be able to easily measure each worker's output
Indicate whether the statement is true or false
An increase in money supply causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall