Because trade raises the amount that an economy can produce by letting firms and workers play to their comparative advantage, trade will also cause
a. the average level of wages in an economy to fall.
b. the average level of wages in an economy to rise.
c. the average number of jobs in an economy to rise.
d. the average number of jobs in an economy to fall.
b. the average level of wages in an economy to rise.
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If the country wanted to produce the maximum total number of units of guns and butter combined, it would produce at point(s) ________________.
Refer to Figure 17-1. Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point C in the long run?
A) Increase the money supply. B) Buy treasury bills. C) Lower the discount rate. D) Sell treasury bills. E) No policy will move the economy to point C in the long run.
Refer to Table 10-2. Suppose Keira's income increases from $18 to $23 but prices have not changed. What is her utility maximizing bundle now?
A) 5 cups of soup and 4 sandwiches B) 5 cups of soup and 5 sandwiches C) 6 cups of soup and 5 sandwiches D) 4 cups of soup and 5 sandwiches
In 2008, federal, state, and local redistribution programs were most close to
a. $20.0 trillion b. $200.0 billion c. $2.0 billion d. $200.0 trillion e. $2.0 trillion