When economists talk about the gains from trade they mean that
A) no one ever gets hurt by trade.
B) the benefits of trade outweigh the losses.
C) business firms benefit from trade but not necessarily individuals.
D) trade increases government revenue through taxes on imports.
E) economic restructuring is usually quick and painless.
B
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Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand
A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase
A fixed exchange rate policy:
A. imports monetary policy. B. strengthens domestic interest rate policy. C. will likely make domestic inflation more volatile. D. decreases central bank policy accountability and transparency.
Which would be considered an investment according to economists?
a. The purchase of newly-issued shares of stock in Microsoft b. The sale of government bonds by the nation's central bank c. The construction of a new computer chip factory by Intel d. The purchase of shares of stock by Fidelity, a mutual fund company
If the price is above $145, what will the firm do (a) in the short run? (b) in the long run?
