Which of the following would be most likely to help the residents of a nation produce a larger output and consume a wide variety of products at economical prices?
a. imposition of tariffs on imported goods
b. quotas that protect domestic businesses against foreign producers that pay workers low wages
c. free trade
d. exchange rate controls
C
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As oil prices increase, it becomes more economical to extract oil from sources like tar sands
Indicate whether the statement is true or false
The tax multiplier equals the change in ________ divided by the change in ________
A) consumption spending; taxes B) taxes; consumption spending C) taxes; equilibrium real GDP D) equilibrium real GDP; taxes
There is a famous economics saying that argues "if diminishing marginal productivity never set in then the world could be fed from a flower pot." Explain what this means economically
What will be an ideal response?
The Fed's "dual mandate" is to achieve ________
A. a government budget surplus and low interest rates B. low inflation and maximum employment C. a stable quantity of money and stable prices D. zero unemployment and a stable means of payment