If nations begin to specialize in production for the purpose of trade,
a. the utility from consumption will increase, but not the total output.
b. total world output will increase, as well as well being from consumption.
c. total world output will increase, but well being from consumption will not.
d. neither total output nor well being from consumption will change.
e. the impact on total output and well being cannot be predicted.
b
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If a 10% increase in the price of one good, A, results in an increase of 5% in the quantity demanded of another good, B, then it can be concluded that A and B are
A. complementary goods. B. substitute goods. C. secondary goods. D. independent goods.
Indicate how changes in monetary policy are transmitted to the goods and services market? Discuss for the case of an expansion in the money supply
The additional amount a person is willing to pay to obtain a good or resource now rather than later is called the
a. interest rate. b. nominal price of future goods. c. inflationary premium. d. risk premium.
The resource market is important from a macroeconomic perspective because
a. it coordinates the allocation of productive resources and determines the costs of production. b. it determines the interest rates faced by borrowers and lenders. c. inflation rates are set in the resource market by the government. d. resource prices determine the position of the long-run aggregate supply curve.