Answer the following statements true (T) or false (F)
1. A nation needs an abundance of all productive resources in order to attain a high standard of living.
2. If a society is producing at a point on its production possibilities curve, it does not have the problem of scarce resources.
3. The process of specialization can be carried out by business firms as well as by regions and nations.
4. The extent to which a society can engage in specialization and exchange is limited by the size of the market.
1. FALSE
2. FALSE
3. TRUE
4. TRUE
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Refer to the above figure. Which diagram shows the effect on the market of Corn Flakes when the demand for Corn Flakes has increased?
A) graph C B) graph D C) neither graph D) both graphs
One economist has argued that rent control is "the best way to destroy a city, other than bombing." Why would an economist say this?
a. He fears that low rents will cause low-income people to move into the city, reducing the quality of life for other people. b. He fears that rent control will benefit landlords at the expense of tenants, increasing inequality in the city. c. He fears that rent controls will cause a construction boom, which will make the city crowded and more polluted. d. He fears that rent control will eliminate the incentive to maintain buildings, leading to a deterioration of the city.
The official settlements balance is the sum of the nonofficial financial account balance and the public current account balance.
Answer the following statement true (T) or false (F)
If nominal GDP is $600 billion and the money supply is $200 billion, the velocity of money is
A. 0.33. B. 1.2. C. 3. D. 12.