Voluntary trade promotes economic progress because it
A) moves goods, services and resources from people who value them more to individuals who value them less.
B) benefits buyers at the expense of sellers.
C) encourages individuals to become self-sufficient.
D) makes larger outputs possible as a result of specialization.
D) makes larger outputs possible as a result of specialization.
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Other things constant, a rise in which of the following would tend to increase the nominal interest rate?
A) The rate of time preference B) The risk premium C) The expected rate of inflation D) Any of the above.
Based on the Saving-Investment Diagram, if the difference between values G and E measures the net capital outflow, then ________
A) the difference between values G and E measures the trade surplus B) the difference between values H and D measures the trade surplus C) the domestic real interest rate is indicated by B D) desired saving has decreased E) none of the above
Suppose demand decreases and supply increases. Which of the following will happen?
a. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease. b. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase. c. Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase. d. Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease. e. The change in equilibrium price and quantity cannot be determined.
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one computer?
A. 1 shirt B. ¼ shirt C. ½ shirt D. 4 shirts