All of the following are true EXCEPT
A) trade between two nations reduces their opportunity costs.
B) trade makes nations dependent on each other.
C) trade between nations will not benefit all citizens.
D) the principle of comparative advantage does not apply to countries with limited resources.
D
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Figure 11-1
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In Figure 11-1, to reach the level of potential GDP, the administration of President Obama would most likely advocate
A. increasing Social Security payments. B. decreasing defense spending. C. decreasing personal income taxes. D. All of the above are correct.
Money will fail to serve as a medium of exchange if it ceases to be a store of value
Indicate whether the statement is true or false
Which of the following individuals will undertake extensive research before making their choice?
a. A person planning to buy a new house b. A homemaker purchasing daily groceries c. A person searching for a present before attending a birthday party d. A student buying academic books as recommended by the faculty
The entry of new firms into a competitive industry will very likel
a. shift the short run industry supply curve to the right b. cause the market price to fall c. reduce the profits of firms in the industry d. cause the market quantity sold to rise e. all of the above