Refer to Table 2-12. If the two countries specialize and trade, who should export canoes?
A) Honduras
B) They should both be exporting canoes.
C) Guatemala
D) There is no basis for trade between the two countries.
C
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When the Federal Reserve buys bonds on the open market, it decreases the money supply
Indicate whether the statement is true or false
Refer to Figure 5-13. The gasoline tax raises the price paid by consumers by ________ per gallon
A) $0.75 B) $1.25 C) $1.75 D) $2.00
The market pricing system corrects an excess supply by
a. raising the product price and increasing producer profits. b. lowering the product price and decreasing producer profits. c. raising the product price and decreasing producer profits. d. lowering the product price and increasing producer profits.
One reason that U.S. exports of commercial services have increased steadily over the past 25 years is that
A. the U.S. government owns and operates most of the economy's service sector. B. the United States has made significant investments in new information technologies. C. the U.S. economy operates like one big corporation. D. European and Asian nations have shown little interest in developing their own commercial services sectors.