Fundamentally, to reap the benefits of specialization, an economy must
A) be heavily industrial.
B) be heavily agricultural.
C) have an extensive system of higher education.
D) develop ways for individuals to trade goods with one another.
D
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How can a sole proprietorship raise funds needed for firm expansion?
What will be an ideal response?
In a laissez-faire system, the price mechanism dictates the production planning decisions.
Answer the following statement true (T) or false (F)
Which of the following is true? a. In equilibrium, with only two countries, the excess demand for loanable funds in one country will equal the excess supply of loanable funds in the other. b. Countries with net capital inflows tend to be few or no capital outflows
c. Capital flows will tend to decrease real interest rates in countries with a capital inflow. d. Both a. and c. are correct.
Supply-side economics
A. promotes reducing taxes to create incentives to increase productivity. B. promotes expansionary fiscal policy by simultaneously increasing taxes and government spending. C. is based on the Ricardian equivalence theorem. D. is based on the crowding-out effects.