Refer to the given data. Assume that before specialization and trade Landia was producing combination C and Scandia was producing combination B. If these two nations now specialize completely based on comparative advantage, the total gains from specialization and trade would be:
Answer the question on the basis of the following production possibilities data for Landia and Scandia:
A. 8 fish and 2 chips.
B. 10 fish and 4 chips.
C. 0 fish and 8 chips.
D. 4 fish and 6 chips.
C. 0 fish and 8 chips.
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Refer to Figure 15-9. In the figure above suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an increase in the required reserve ratio B) a decrease in income taxes C) an open market sale of Treasury bills D) an open market purchase of Treasury bills
During World War II
A) the Board of Governors was temporarily disbanded. B) the Fed was not allowed to make discount loans. C) the Fed agreed to hold interest rates on short-term Treasury securities at low levels. D) the Fed agreed not to buy Treasury securities.
.If the supply of a good decreased, what would be the effect on the equilibrium price and quantity?
What will be an ideal response?
Automatic stabilizers will reduce tax revenues during recessions and increase tax revenues during periods of strong economic growth.
Answer the following statement true (T) or false (F)