Briefly explain how specialization and trade can benefit nations
What will be an ideal response?
When nations specialize in what they have a comparative advantage and then trade with other nations, their production possibilities curves move outward, which yields greater production and consumption possibilities.
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In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the demand of reserves, ________ the federal funds rate, everything else
held constant. A) decreases; lowering B) increases; lowering C) increases; raising D) decreases; raising
On average throughout the United States,
a. almost all individuals leaving welfare had jobs b. day-care shortages arose as individuals left welfare for work c. only about half the individuals leaving welfare had jobs d. former welfare recipients who are now working find that they no longer qualify for food stamps, child care, or Medicaid e. welfare rolls remained stable during the late 1990s and early twenty-first century.
Increased government spending on unemployment insurance during a recession is an example of:
A. an automatic stabilizer. B. discretionary fiscal policy. C. expansionary fiscal policy. D. contractionary fiscal policy.
What are the two parts of the economic problem? a. economics explains many things, but only things that are related directly to money
b. natural resources are scarce but human-made resources are not. c. scarcity forces us to choose and choices are costly because we must give up other opportunities that we value. d. we have unlimited wants and unlimited resources.