Which of the following is true of exchange?
a. The value of a good is determined by the cost of the resources required to produce the good.
b. Exchange makes it possible for trading partners to produce more goods through division of labor and adoption of mass production methods.
c. Nothing new is created by exchange; if one party to an exchange gains, the other must lose an equal amount.
d. Both a and b are true.
B
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The total value of production from Ford's manufacturing plant in Cologne, Germany would be included in Germany's gross national product
Indicate whether the statement is true or false
Cross-price elasticity is represented by the formula ?Q/?P × P/Q; where Q and ?Q represent the quantity demanded and change in quantity demanded of a good, and P and ?P represent the price and change in price of a related good respectively
a. True b. False Indicate whether the statement is true or false
When someone does not have to pay for a good it:
A. means there is zero demand for the good. B. is rational to overconsume. C. is rational to underconsume. D. is irrational to overconsume.
When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called
A. quantitative tightening. B. qualitative tightening. C. qualitative easing. D. quantitative easing.