According to the theory of comparative advantage, ________ raise(s) productivity by lowering opportunity costs.
A. trade and specialization
B. exchange and consumption
C. economic growth
D. investment in capital goods
Answer: A
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Discrimination that occurs because someone does not like a personal characteristic of another person is called ________, and discrimination that occurs because someone assigns the properties of a group to an individual who is a member of that group is called ________.
Fill in the blank(s) with correct word
The reason a shock to one sector can spread to the whole economy is that
a. a decrease in production in one sector leads to an overall decrease in spending b. firms will need to help bail out other firms that are having troubles c. an increase in production in one sector will lead to an overall decrease in spending d. most shocks are not sector-specific but economy-wide e. workers laid off in the one sector will purchase more goods in another sector
If the Fed were to change the reserve requirement in an effort to increase the money supply, they would:
A. increase the reserve requirement. B. decrease the reserve requirement. C. increase the discount rate. D. open the discount window longer.
The slope of the budget constraint line is the
A. ratio of different levels of income. B. income of consumers divided by the price of each good. C. ratio of this year's income to last year's income. D. rate of exchange between the two goods.