How can a country benefit from effectively exporting its goods?
A. Its citizens can buy cheaper goods.
B. Its businesses can invest in the future.
C. Its domestic spending increases.
D. Its citizens have more money.
Answer: B. Its businesses can invest in the future.
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The short-run Phillips curve is upward sloping
a. True b. False Indicate whether the statement is true or false
Who said, "The whole of science is nothing more than the refinement of everyday thinking"?
a. Isaac Newton b. Albert Einstein c. Adam Smith d. Benjamin Franklin
Refer to the figure below. In this case, the private market ________ resources efficiently because ________.
A. does not allocate; some of the costs of paper production do not fall on producers B. does not allocate; demand and supply do not cross at the market equilibrium C. allocates; consumers are willing to pay the external cost of production D. allocates; firms are motivated to maximize profit
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.
A. 10,000 pounds of cheese and 30 cars B. 10,000 pounds of cheese C. 5,000 pounds of cheese and 20 cars D. 30 cars