If a country is completely self-reliant in producing goods for its own consumption needs, then
A. It achieves a higher standard of living by exporting.
B. It promotes specialization.
C. It consumes more than it can with trade.
D. Its consumption possibilities equal its production possibilities.
Answer: D
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Why does unemployment arise and what makes some unemployment unavoidable?
What will be an ideal response?
In the above figure, when price is below E, this firm should
A) lower prices. B) continue to operate as-is. C) attempt to lower ATC and to raise AVC. D) shut down.
Which of the following factors does not help explain incomplete specialization by countries that trade in accordance with comparative advantage?
a. There may be high transportation costs for perishable products or human services. b. The economies of trading partners may be of vastly different sizes. c. Opportunity costs of production may not be constant, but may vary with the volume of production. d. Governments may impose all kinds of barriers to free international trade, such as tariffs and quotas. e. The cost of making trade deals may have become extremely low because of the existence of the World Trade Organization.
One of the reasons that expansionary monetary policy was not as effective as expected in recent years is that banks:
A. purchased Treasures with the reserves that the Fed added to their accounts. B. loaned reserves that the Fed added to banks. C. returned reserves that the Fed added to banks. D. held onto the reserves that the Fed added to banks.