What is meant by the statement "People trade, not nations."
What will be an ideal response?
Nations are made up of groups of individuals. Nations as whole don't trade with each other but rather the individual consumers and businesses of those nations do the trading.
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
You're buying snacks for an Econ Club meeting. You've been given $100 to spend on chips and soda. If bags of chips cost $3 each and Soda costs $1 each, how much of each can you buy?
A. 40 bags of chips and 10 sodas B. 10 bags of chips and 75 sodas C. 25 bags of chips and 25 sodas D. 30 bags of chips and 15 sodas
Money is "created" when
A. a depositor deposits money at the bank. B. people use money to pay for stuff they buy from one another. C. someone lends money to a friend or a family member. D. a bank grants a loan to a customer.
The price of one good produced by a multiproduct industry rises. The effect on a second good produced by that industry will be
A. a shift left in the supply curve for the second good. B. no change in the supply curve for the second good. C. a shift right of the supply curve for the second good. D. a shift right of the demand curve for the second good.