Refer to the data for a fictional economy. The changes in the budget conditions between 1999 and 2000 best reflect:
A. demand-pull inflation.
B. an expansionary fiscal policy.
C. a tax increase.
D. a contractionary fiscal policy.
B. an expansionary fiscal policy.
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For a nation to engage in international trade on the basis of comparative advantage, it should
A. purchase resources from other nations until it acquires a comparative advantage in at least one product. B. produce only those goods in which it has an absolute advantage over other nations. C. specialize in producing those products that have the lowest opportunity cost per unit compared to other nations, then trade some if its output. D. specialize in the production of those goods that have the highest opportunity cost, then trade the excess output.
Which of the following states the definition of supply?
A. More of a good is supplied at a lower price. B. There is a positive relationship between the price of a good and the quantity that buyers purchase. C. There is a positive relationship between the price of a good and the quantity offered for sale by suppliers. D. There is a negative relationship between the price of a good and the quantity offered for sale by suppliers.
The Great Depression was characterized by:
A. the Roaring Twenties. B. accelerated economic growth. C. unemployment exceeding 25 percent. D. firms rapidly expanding their borrowing rates.
In Figure 33.1, suppose that the Gini coefficient for Omega is 0.55. The Gini coefficient for Alpha must be
A. Greater than 0.55. B. Equal to 0.55. C. Less than 0.55. D. 0.45.