The ability to produce a good using fewer resources than someone else is called
A) absolute advantage.
B) comparative advantage.
C) specialization.
D) protectionism.
A
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In economic terminology, an inferior good is a good
A) that no one will purchase. B) that doesn't work properly. C) that has no monetary value. D) for which demand increases as income decreases.
In macroeconomics, it is impossible to include many individual markets in a single data source
a. True b. False
The Gibson Paradox shows that:
a. Central banks face a paradox when they want to stimulate their economies because consumers may not spend the newly created money. b. When monetary policy is loose and expected inflation rises, the nominal interest rate rises rather than falls. c. When fiscal policy is loose (i.e., high government spending and falling tax rates), society as a whole is more willing (not less willing) to give up consumption today for consumption in the future. d. When expected inflation rises, nominal interest rates fall rather than rise. e. When expected inflation falls, government spending tends to increase, rather than decrease, as is frequently assumed.
The Board of Governors of the Federal Reserve System is
A) elected by the member banks' presidents. B) appointed by the Secretary of the Treasury C) appointed by the state governors in each Federal Reserve district. D) appointed by the president of the United States and confirmed by the Senate.