A country can achieve some combination of goods outside its production possibilities curve by:
A. idling some of its resources.
B. specializing and engaging in international trade.
C. buying the debt (bonds and stocks) of foreign nations.
D. producing more capital goods and fewer consumer goods.
Answer: B
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The average tariff rate imposed by the United States on imported goods
A) has generally increased over the past 60 years. B) has generally decreased over the past 60 years. C) peaked in 1990. D) peaked in 1980.
Central planning is an efficient method for making coordination decisions.
Answer the following statement true (T) or false (F)
The basic economic goal of American labor unions is
A. to increase the real income of their members. B. to increase the real income of all workers. C. to improve the nominal wages of their members. D. to improve working conditions.
From the perspective of supply-side economists, a cut in tax rates will:
A. Increase output but will increase the budget deficit B. Increase unemployment but will reduce the budget deficit C. Reduce unemployment but will increase the budget deficit D. Reduce unemployment and also reduce the budget deficit