Countries often have to choose between producing military or consumer goods, a trade-off economists call ____________ .
a. export or import.
b. a free market economy.
c. farm goods or factory goods.
d. guns or butter.
Ans: d. guns or butter.
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The percentage return on a loan expressed in terms of goods and services is the
A) real wage rate. B) CPI interest rate. C) real interest rate. D) nominal wage rate. E) nominal interest rate.
The difference in wages that results from nonmonetary characteristics of different jobs is called the
If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:
A. increase the quantity demanded by about 2.5 percent. B. decrease the quantity demanded by about 2.5 percent. C. increase the quantity demanded by about 25 percent. D. increase the quantity demanded by about 250 percent.
If consumers and businesses are especially pessimistic, as in the Great Recession of 2007-2009, and do not want to borrow money from banks, then the use of an expansionary money policy is likened to:
A. Completing the circle B. Pushing on a string C. Filling in the blanks D. Checking the list