Answer the following statement(s) true (T) or false (F)
1. Trading is beneficial whenever people differ in their abilities or differ in their tastes.
2. In order for there to be a gain from trade, there has to be a difference in either tastes or abilities.
1. True
2. False
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If an economy produces only steel and wheat, a new fertilizer will
A) cause the production of wheat to increase at every point on a production possibilities curve but not affect the production of steel, that is the curve moves outward on the wheat axis only. B) cause the production of both wheat and steel to increase at every point along the production possibilities curve, that is the curve moves outward on both the wheat axis and the steel axis. C) not affect the production of either wheat or steel. D) cause the production of steel to increase at every point along the production possibilities curve but not affect the production of wheat, that is the curve moves outward on the steel axis only.
Consider an economic model designed to analyze the purchasing decisions of households. An assumption that a household chooses between only two goods would be an example of a
a. simplifying assumption b. critical assumption c. macroeconomic assumption d. financial assumption e. positive assumption
In macroeconomics, the vertical axis in a supply-demand model measures the price level rather than a particular product's price
a. True b. False Indicate whether the statement is true or false
The net value to the federal government of the bonds currently held in the Social Security Trust Fund is
a. approximately $1 trillion. b. now approaching $2 trillion. c. greater than $2.5 trillion. d. zero, because the federal government is both the payee and recipient of the interest and principal represented by these bonds.