The principle of comparative advantage helps explain trade between nations
a. True
b. False
Indicate whether the statement is true or false
True
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The best measure of a country's standard of living is
A) total nominal GDP. B) GDP per unit of capital. C) GDP per capita. D) GDP per labor hour.
A production possibilities frontier shifts outward when
a. the economy experiences economic growth. b. the desires of the economy's citizens change. c. at least one of the basic principles of economics is violated. d. opportunity costs are lessened.
One of the objectives of supply-side policies is to
A. focus attention on the trade-off between inflation and unemployment. B. sharpen the trade-off between inflation and unemployment. C. eliminate the trade-off between inflation and unemployment. D. convince the public of the trade-off between inflation and unemployment.
Which of the following is FALSE?
A. The classical economists relied on market forces to create full employment. B. Keynes advocated an active government role for curing a recession. C. Keynes suggested that full employment was a "rare and short-lived occurrence". D. The classicals believed demand created its own supply.