Which of the following is true if a country specializes in producing the goods for which it has a comparative advantage and then trades?
A. Output increases, and everyone in the economy benefits.
B. Income is redistributed toward import-competing industries.
C. There are gainers and losers, but the country as a whole is better off.
D. Losers may outweigh the gainers, and a country may be worse off.
C. There are gainers and losers, but the country as a whole is better off.
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Since most people prefer more money to less, the desire for more money
A) makes it difficult to induce people to cooperate. B) makes it difficult to induce people to sacrifice for the larger public good. C) makes social order highly unstable and unpredictable. D) can induce useful changes in behavior. E) implies people are living in a capitalist society.
In economics, the term ________ means "additional" or "extra."
A) allocative B) equity C) marginal D) optimal
In 2008, several of the world's central bank actively worked together to push down global interest rates. This is an example of
A) international policy coordination. B) international policy cooperation. C) international policy externalities. D) structural interdependence.
The IS curve will shift down and to the left when
A. desired saving declines. B. consumption increases. C. the expected future marginal product of capital declines. D. government purchases increase.