If the rate of interest did not equate saving and investment and total output was greater than total spending, the classical economist argued, competition would tend to force
A. product and resource prices down.
B. product prices up and resource prices down.
C. product prices up and resource prices up.
D. product prices down and resource prices up.
A. product and resource prices down.
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In the specific factors model, a 5% increase in the price of food accompanied by a 10% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in
the welfare of the fixed factor in the production of cloth. A) an ambiguous change; a decrease; an increase B) an ambiguous change; an ambiguous change; an ambiguous change C) a decrease; an ambiguous change; an ambiguous change D) an increase; a decrease; an increase E) an ambiguous change; an increase; a decrease
The evidence to support economist de Soto's claim that a strong titling system would lead countries to increase their economic development is:
A. strong and undisputed. B. mixed and implies that such systems may be important with other factors present. C. absent, and his claims are unfounded. D. not important as in economics some theories don’t require empirical evidence to be supported.
An increase in the price of gasoline shifts the demand for tires to the
a. left, because gasoline and tires are substitutes. b. left, because gasoline and tires are normally used together. c. right, because gasoline and tires are substitutes. d. right, because gasoline and tires are normally used together.
If policymakers impose import restrictions on clothing, the U.S. trade deficit will shrink
a. True b. False Indicate whether the statement is true or false