Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country
A) total employment is greater.
B) total consumption of goods is greater.
C) wages are higher.
D) total welfare is greater.
Answer: B
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If there is a decrease in world oil prices and the Fed wishes to maintain output stability, what should it do?
a. Buy bonds in the open market. b. All the economy to adjust itself. c. Sell bonds in the open market. d. Impose higher taxes to counteract the supply shock. e. Lower taxes to maintain output.
If the labor force grows at a faster rate than the number employed, the unemployment rate will fall.
Indicate whether the statement is true or false.
One basic difference between "land" and "capital" resources is that land is:
A. Manufactured while capital is man-made B. Unlimited while capital is limited C. Natural while capital is man-made D. Limited while capital is unlimited
Since the legal age to vote in the United States is 18, the legal drinking age in the United States should be lowered to 18. This statement is best described as
A. a positive statement. B. a normative statement. C. an implication of an efficient market. D. a marginal statement.