An increase in exports decreases aggregate demand
Indicate whether the statement is true or false
FALSE
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Suppose that you decide that you no longer want to hold currency, and deposit all of your currency holdings to your checking account. What is the immediate or initial impact of this transaction on M1 and M2?
What will be an ideal response?
If all we know is that the opportunity cost of a car equals 100 refrigerators in France, and 200 refrigerators in Italy, we can conclude
a. nothing about which nation has the absolute advantage in refrigerator production b. that France has a comparative advantage in refrigerator production c. that mutually beneficial international trade might involve the market exchange of 1 car for 80 refrigerators (whereby France would gain more than Italy) d. that mutually beneficial international trade might involve the market exchange of 1 car for 300 refrigerators (whereby Italy would gain more than France) e. that France has the absolute advantage in car production
Which of the following statements about markets is most accurate?
a. Markets are usually a good way to organize economic activity. b. Markets are usually inferior to central planning as a way to organize economic activity. c. Markets fail and are therefore not an acceptable way to organize economic activity. d. Markets are a good way to organize economic activity in developed nations, but not in less developed nations.
Suppose it was discovered that the consistent consumption of chocolate raised IQ by ten points. As a result,
A. both equilibrium price and quantity for chocolate will rise. B. both equilibrium price and quantity for chocolate will fall. C. equilibrium price will rise and equilibrium quantity will fall for chocolate. D. equilibrium price will fall and equilibrium quantity will rise for chocolate.