An economy that grows in world interdependence experiences
(a) growing trade on the basis of comparative advantage.
(b) more vulnerability to the business cycles of trading partners.
(c) wealth accumulation.
(d) all of the above.
(d)
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Quantitative easing refers to a policy action in which a central bank
A) sells government securities to directly decrease bank reserves. B) decreases interest rates directly without altering bank reserves. C) increases interest rates directly without altering bank reserves. D) buys government securities to directly increase bank reserves.
Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports?
A) Q0 B) Q1 C) Q2 D) Q2 - Q0
The price elasticity of demand for eggs is 0.27. Therefore, an increase in the price of eggs will cause:
A. a decrease in egg suppliers' total revenue. B. an increase in the demand for eggs. C. an increase in egg suppliers' total revenue. D. an increase in the quantity demand of eggs.
Suppose you and your roommate have the following agreement when it comes to cleaning your apartment: each person washes her or his own dishes after each meal. The principle of trade you just learned tells you that it would be more efficient if:
a) both of you wash your own dishes after each meal. b) neither of you wash the dishes after eating. c) each of you wash half of all the dirty dishes. d) one of you wash all the dishes while the other does a different chore.