If people have the same abilities, then
a. they cannot gain from trade.
b. they can still gain from trade if they have different tastes.
c. they can still gain from trade as long as they specialize in different activities.
d. they can still gain from trade only if they are facing different absolute prices.
b. they can still gain from trade if they have different tastes.
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Intertemporal decisions involve economic decisions
A) made within a given period of time. B) made in between two periods of time. C) involving trade-offs across periods of time. D) that ignore concerns about the future.
If all producers in a market are cartel members, then the demand curve facing the cartel is
A) the market demand curve. B) horizontal. C) identical to the demand curve in the dominant firm model. D) identical to the monopolist's demand curve.
If the Fed purchases government securities from a commercial bank, which of the following will happen?
A) The Fed will increase the bank's reserves on deposit at the Fed. B) The Fed will decrease the bank's reserves on deposit at the Fed. C) The assets (government securities) of the Fed will decrease. D) The assets (government securities) of the Fed will increase. E) a and d
What is one way the Federal Reserve Bank serves the government?
What will be an ideal response?