Specialization and trade exploit differences in productivity across workers and
A. make everyone worse off.
B. only benefit the importer.
C. only benefit the exporter.
D. make everyone better off.
Answer: D
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Economists must actually measure the utilities of goods to determine demand
Indicate whether the statement is true or false
One intention of deposit insurance is to reduce the danger of
A. excess lending. B. excess profits. C. risky lending. D. bank runs. E. All of these responses are correct.
If a fiscal policy change is going to exert a stabilizing impact on the economy, it must
a. add demand stimulus during a slowdown but restraint during an economic boom. b. exert an expansionary impact during all phases of the business cycle. c. restrain aggregate demand during all phases of the business cycle. d. keep the government's budget in balance.
Which of the following statements explains why trading partners are often concerned about each other's labor standards?
I. From a humanitarian perspective, people do not want to buy products if workers are in oppressive conditions. II. Unions realize that low standards for labor will be less costly, and those products will compete more effectively with products produced at home. III, Some nations do not enforce their own lax labor standards, but have also signed on to trade agreements. a. I b. II c. II and III d. I, II, and III