Economic theory and history indicate that open elections and democratically elected governments
What will be an ideal response?
are unable to guarantee ether the emergence or continuation of economic institutions and policies that will encourage productive behavior.
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The law of demand states that as the price
a. increases, total quantity demanded will increase. b. decreases, total quantity demanded will decrease. c. increases, total quantity demanded will decrease. d. increases, total quantity demanded will stay the same.
If every country specializes in what it produces best and then trades, more will be produced than if each country tries to produce everything for its own needs.
Answer the following statement true (T) or false (F)
Aggressive policy measures taken by the monetary authority during the 2007-2008 financial crisis in the United States resulted in:
a. avoidance of a recession caused by a tight credit market. b. almost no transmission of the monetary stimulus to market rates of interest, increased lending, and expansion of GDP. c. lower rates of interest and increased investment activity. d. an increase of real GDP and a fall in the core unemployment rate.
Suppose the United States puts a numerical limit on the number of imported cars from Japan and South Korea. This would be known as a(n)
A. natural barrier to trade. B. tariff. C. quota. D. exchange rate.