Which of the following is true?
i. Comparative advantage drives international trade.
ii. Compared to a no-trade situation, imports make domestic producers better off.
iii. Tariffs lower the domestic price of imported goods.
A) Only i B) Only ii C) Only iii D) i and ii E) i and iii
A
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An increase in the stock of capital in a society is called capital deepening
a. True b. False Indicate whether the statement is true or false
If the discount rate is raised then banks borrow
a. more from the Fed so reserves increase. b. more from the Fed so reserves decrease. c. less from the Fed so reserves increase. d. less from the Fed so reserves decrease.
The underlying reason large taxes create small revenues is ______.
a. a decrease in quantity exchanged b. a maximization of efficiency c. a gain in consumer surplus d. an inability for supply to meet demand
People will buy more of an inferior good when their income decreases.
Answer the following statement true (T) or false (F)