Suppose after the semester ends, you take a trip to a tropical island. Upon arriving at the island, you make a stop at one of the markets and notice that everyone is carrying around jars full of little turtles
You also notice the person in line in front of you just paid for a bottle of rum with 6 turtles. Someone else just bought a straw hat for two turtles. Thinking back to your economics class (as painful as that may be), you would conclude that
A) turtle soup is a delicacy. B) turtles are valueless.
C) this is a barter economy. D) those little turtles are serving as money.
D
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Cyclical unemployment arises when
A) unskilled or low-skilled workers find it difficult to obtain desirable, long-term jobs. B) labor must be reallocated from industries that are shrinking to areas that are growing. C) workers must search for suitable jobs and firms must search for suitable workers. D) output and employment are below full-employment levels.
Answer the following statements true (T) or false (F)
1. Only in developing nations would one expect the value of either exports or imports to exceed 200 percent of gross national product. 2. In dollar value, the United States is the largest importer in the world. 3. The value of U.S. exports is about 10 percent of its GDP. 4. Although political arguments strongly favor free trade, most decisions affecting international trade are made in the economic arena. 5. The only factor determining whether a country can develop a comparative advantage in production is the degree to which it has a highly skilled labor force.
It is necessary for the Federal Reserve to regulate the money supply because
a. banks tend to act in a counter-cyclical manner with regard to the money supply. b. banks are not profit-oriented, and tend to be unresponsive to the needs of business. c. left to itself, the banking system will create a gyrating money supply that will be destabilizing. d. left to itself, the banking system will not be able to increase or decrease the money supply.
One reason for the success that firms have in getting the government to erect and maintain barriers to foreign competition is members of Congress who engage in ________, where members in districts with protected industries agree to trade votes on issues
that concern other members in order to uphold tariffs. A) vote fixing B) gerrymandering C) logrolling D) filibustering