The production possibilities curve suggests that a nation cannot live beyond its means or production potential. Explain why international trade would cause this statement to be modified
Please provide the best answer for the statement.
International trade allows for greater specialization and production. This activity has the effect of increasing the quantity and quality of resources, using resources more efficiently or improving output through the use of new production techniques. Thus, the gains from international trade and specialization are the equivalent of economic growth.
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The simple deposit multiplier is larger than the money multiplier
Indicate whether the statement is true or false
Which of the following may result in a higher equilibrium price for a product?
a. Advertising b. Expectations c. Imperfect information d. All of the above answers are true. e. None of the above answers a.-c. are true.
An increase in the discount rate by the Federal Reserve causes the money stock to expand
a. True b. False Indicate whether the statement is true or false
Suppose that all goods are made with two factors?labor and capital. The table below shows the total endowments of each factor in the United States and Canada.
Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of free trade in the United States are likely to favor a. either capital or labor, depending on U.S. productivity b. Not enough information to tell. c. neither capital nor labor. d. capital. e. labor.