Passive macroeconomic policy would rely on natural market forces and automatic stabilizers to close an expansionary gap
a. True
b. False
Indicate whether the statement is true or false
True
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Country A produces 10 chairs and 6 tables using its resources. Country B produces 12 chairs and 18 tables. Determine the comparative advantage and the absolute advantage that both countries enjoy
What will be an ideal response?
If the slope of a demand curve is equal to -0.1 then
A) the demand is elastic at low prices and inelastic at high prices. B) as price increases by 10 percent quantity demanded decreases by 1 percent. C) we don't know whether the demand is elastic or inelastic. D) demand is inelastic.
Jack is traveling to Southeast Asia, Mariko has planned a visit to the Amazon, and Joe has to travel to Seattle for an advertising campaign. In the given scenario, which of the following statements is true?
a. Jack should use credit cards, Mariko should use traveler's checks, and Joe should use cash. b. Jack should use traveler's checks, Mariko should use credit cards, and Joe should use cash. c. Jack should use cash, Mariko should use traveler's checks, and Joe should use credit cards. d. Jack should use traveler's checks, Mariko should use cash, and Joe should use credit cards.
The "Classical Dichotomy" refers to:
a. a distinction between "value in use" and "value in exchange." b. separate theories of demand and supply. c. the possibility of Giffen's Paradox. d. determination of relative prices independent of the nominal price level.