Trade is only beneficial if a nation has an absolute advantage in producing all products
Indicate whether the statement is true or false
FALSE
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In 2008 and 2009, the quantity theory of money did a ________ job of predicting year-to-year changes in the inflation rate because ________
A) good; interest rates behaved predictably B) poor; the Fed changed the growth rate of the quantity of money too quickly C) poor; velocity of circulation plunged D) good; real GDP remained stable E) poor; the price level and the velocity of circulation did not change
Explain how the production possibilities frontier illustrates scarcity
What will be an ideal response?
In comparing actively managed mutual funds with those funds that simply buy and hold a large market portfolio (index funds), we would expect that
A) the actively managed funds provide a higher return than the index funds. B) the index funds provide a higher return after expenses than the actively managed funds. C) actively managed funds and index funds provide the same returns. D) index funds provide a lower return than actively managed funds only if taxes are taken into consideration.
The basic problem with the government setting an absolute poverty line is that it is
a. completely objective. b. somewhat arbitrary. c. unconstitutional. d. based on average income.