In his book, The Wealth of Nations, Adam Smith made the following observation?
a. There is no such thing as a free lunch
b. People buy more when prices are low than when prices are high.
c. No matter how much people make, they tend to spend more than they make.
d. People tend to pursue their own personal interest and that an invisible hand (the market) guides their self-interest, increasing social welfare and economic well being.
d
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An increase in foreign output would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________
A) rise; shift up B) rise; shift down C) fall; shift up D) fall; shift down
Negotiations between the management of a company and the management of a union for the purpose of setting a mutually agreeable contract on wages, fringe benefits and working conditions for all employees in a union is know as
A) a closed shop. B) a union shop. C) collective bargaining. D) an industrial union.
Which of the following would tend to raise the value of the U.S. dollar in foreign exchange markets?
A. A rise in U.S. interest rates B. An easy monetary policy in the United States C. A contractionary fiscal policy in the United States D. An increase in the U.S. demand for foreign oil
Suppose Canada has a population of 30 million people, and a labor force participation rate of 2/3. Furthermore, suppose the natural rate of unemployment in Canada is 7%. If the current number of unemployed people is 1 million people, what can we conclude about Canada's economy?
A. There is no frictional unemployment present in the economy. B. The unemployment rate is below the natural rate of unemployment. C. There is cyclical unemployment present in the economy. D. The unemployment rate is above the natural rate of unemployment.