Based on the circular flow model, money flows from households to businesses in:
A. factor markets.
B. product markets.
C. neither factor nor product markets.
D. both factor and product markets.
Answer: B
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Equilibrium in the foreign exchange market implies equilibrium in the balance of payments
Indicate whether the statement is true or false
Specialization in production and then trading with other countries
A. Change the mix of output for each country and increase total world output. B. Increase the standard of living for rich countries but not for poor countries. C. Mean that every citizen in every country is better off. D. Change the mix of output for rich countries but not for poor countries.
Protecting property rights:
A. by governments will likely increase productivity. B. is essential to economic growth. C. encourages people to invest in capital. D. All of these are true.
The job protection argument states that trade restrictions are needed to prevent the loss of jobS in domestic industries.
a. true b. false