For any pair of nations and goods, if each country has an absolute advantage in the production of one product, it is reasonable to expect that specialization and trade will benefit both countries.
Answer the following statement true (T) or false (F)
True
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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.
For monetarists, the main cause of economic fluctuations is represented by changes in
a. the levels of household debt. b. investment. c. the growth rate of the quantity of money. d.consumption expenditure.
Which of the following will cause a decrease in the supply of jeans?
A. A decrease in the demand for jeans. B. A decrease in the price of jeans. C. An increase in the wages paid to workers who make jeans. D. A decrease in the expected future price of jeans.
An efficient solution to the external cost of highway congestion would be to:
A. charge tolls for highway use differentially depending on the time of day. B. impose higher fines for speeding. C. charge uniform tolls for all highway use allowing drivers to distribute themselves more uniformly. D. institute a uniform permit policy, granting each driver a permit to drive a prescribed number of miles per week.