The observation that goods and services flow in one direction and money payments flow in another direction is the principle behind
A) a barter economy. B) the circular flow of income.
C) a pure command economy. D) the double coincidence of wants.
B
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Figure 18.1Refer to Figure 18.1. ________ has a comparative disadvantage in bicycles and ________ has a comparative disadvantage in hang gliders.
A. The United States; the United States B. The United States; Canada C. Canada; the United States D. Canada; Canada
What is the relation between the unemployment rate and the proportion of unemployed workers who have been unemployed for 15 weeks or longer?
A) Both rise in recessions. B) Both rise in expansions. C) The unemployment rises in recessions but the proportion of unemployed workers who have been unemployed for 15 weeks or longer declines in recessions. D) The unemployment falls in recessions but the proportion of unemployed workers who have been unemployed for 15 weeks or longer rises in recessions.
Assuming the required reserve ratio is 20 percent and total reserves are set at $20 billion, then the maximum amount of deposits would be
a. $100 billion. b. $40 billion. b. $4 billion. d. $60 billion. e. $120 billion.
All points inside the production possibilities curve indicate
A) a lack of sufficient supply. B) inefficiency in production. C) the law of increasing relative cost. D) the law of decreasing relative cost.