Trade that is within a country or between countries is based on the principle of
A) absolute advantage.
B) scarcity.
C) competition.
D) comparative advantage.
Answer: D
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Keynesians and monetarists share the belief that
a. recessions are caused by falls in aggregate demand. b. the demand for money is stable. c. excess demand is a chronic problem in modern economies. d. the Federal Reserve is responsible for most recessions. e. stabilization policy is beneficial.
Which of the following will bring about an inward shift of a production possibilities curve [PPC]?
a. A decrease in the amount of resource employment b. An increase in the working-age population c. An increase in unemployment d. A decrease in the availability of natural resources e. An increase in the amount of capital available
All two-dimensional graphs must have an origin, a horizontal axis, and a vertical axis.
Answer the following statement true (T) or false (F)
If the marginal propensity to consume is 0.55, the simple spending multiplier is 3.65
a. True b. False Indicate whether the statement is true or false