When economists talk about the gains from trade they mean that
A) no one ever gets hurt by trade.
B) the benefits of trade outweigh the losses.
C) business firms benefit from trade but not necessarily individuals.
D) trade increases government revenue through taxes on imports.
E) economic restructuring is usually quick and painless.
B
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Suppose the Fed buys $1 billion worth of bonds and the required reserve ratio is 20%. In the theoretical limit, the money supply could
A) decrease by $1 billion. B) increase by $1 billion. C) increase by $5 billion. D) decrease by $5 billion.
Economic models start with the assumption of
a. exogenous prices. b. the laws of supply and demand. c. equilibrium. d. rational behavior.
Which of the following would be included in aggregate demand?
a) government's tax collections b) the quantity of services that firms sell c) firms' purchases of newly produced machinery d) the quantity of goods that firms produce
Of the following views on the effects of immigration on the receiving nation's economic growth, which have NOT been suggested by economist Julian Simon?
A. Immigrants raise the standard of living of a nation's native population. B. Immigration costs the local population jobs and greatly lowers their incomes. C. Technological progress is driven by population growth. D. Immigration increases a nation's labor pool and encourages ingenuity.