When a nation reduces the barriers to international trade:
A. each individual citizen becomes worse off.
B. the total value of all goods and serviced produced by the nation rises.
C. each individual citizen becomes better off.
D. the total value of all goods and services produced by the nation falls.
Answer: B
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Monetarists argue that the crowding-out-effect is rather large. True or False
Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. a productivity slowdown accompanied by a decrease in the labor supply. B. skill-biased technological change. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.
What causes demand-side inflation? What causes supply-side inflation?
What will be an ideal response?
Which of the following statements about markets is true?
a. Markets reduce the opportunity costs of making exchanges. b. Markets expand the range of buyers and sellers available as counterparties. c. Markets increase the transaction costs of making exchanges. d. Markets increase the costs of information.