If, with a single unit of labor, a country can produce more of both clothing and computers than another country, economics suggests that there is no opportunity for mutually beneficial trade between the countries.
Answer the following statement true (T) or false (F)
False
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According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply will
A) lead to an increase in investment spending and an increase in real GDP which is greater than the increase in investment spending. B) lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending. C) lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending. D) lead to a decrease in investment spending and an increase in real GDP which is greater than the decrease in investment spending.
When an insurance company specifies certain precautions that an insured person must take it is trying to control for moral hazard.
Answer the following statement true (T) or false (F)
Which of the following statements best describes the neoclassical view about movements in unemployment?
a. The neoclassical view is not especially helpful in explaining why unemployment moves up and down over long time horizons. b. The neoclassical view is especially helpful in explaining why unemployment moves up and down over short time horizons of a few years. c. The neoclassical view is not especially helpful in explaining why unemployment moves up and down over short time horizons of a few years. d. The neoclassical view is especially helpful in explaining why unemployment moves up and down over short and long time horizons.
Firms in a competitive market are said to be price takers because there are many sellers in the market, and the goods offered by the firms are very similar if not identical
a. True b. False Indicate whether the statement is true or false