World output of goods and services increases with specialization because:
A. The world's resources are used more efficiently.
B. The production possibilities curve shifts outward for each country.
C. The workers in each country work fewer hours per week.
D. The infant industries in each country are protected.
A. The world's resources are used more efficiently.
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The appropriate monetary policy in the event of a recessionary gap would be to
A) raise the required reserve ratio. B) increase the difference between the federal funds rate and the required reserve ratio. C) engage in an open market purchase of U.S. government securities. D) increase the difference between the discount rate and the federal funds rate.
Assuming an interior solution, a production plan is profit maximizing if and only if all marginal revenue products are equal to input prices.
Answer the following statement true (T) or false (F)
The first important law regulating monopolies in the United States was
A) the Clayton Act, which was passed in 1890. B) the Sherman Act, which was passed in 1890. C) the Grant Act, which was passed in 1890. D) the Federal Trade Commission Act, which was passed in 1914.
A central bank commitment to a ________ rule for monetary growth can be conveyed by maintaining a ________ exchange rate
A) rigid, fixed B) rigid, flexible C) flexible, fixed D) non-inflationary, flexible