In reality international trade is determined solely by comparative advantage and the free market forces of supply and demand
a. True
b. False
Indicate whether the statement is true or false
False
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If an individual uses money from a demand deposit account to purchase a U.S. savings bond
A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 decreases and M2 decreases.
Describe the two basic philosophies of taxation fairness
Which model is used to evaluate the effects of macroeconomic policy such as tax cuts?
A. Aggregate demand and aggregate supply B. Demand and supply C. Game theory D. Circular flow.
The fundamental reason firms outsource is that:
A. low-wage workers in other countries are more productive than are U.S. workers. B. U.S. workers cannot perform the tasks performed by workers in other countries. C. hiring low-wage workers overseas reduces firms' costs. D. outsourcing increases employment overseas.