Specialization in production and then trading with other countries
A. Change the mix of output for each country and increase total world output.
B. Mean that every citizen in every country is better off.
C. Increase the standard of living for rich countries but not for poor countries.
D. Change the mix of output for rich countries but not for poor countries.
Answer: A
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A) decrease; left B) decrease; right C) increase; left D) increase; right
If a car salesman is paid a fixed salary, the owner is most likely to see
a. A large volume of sales, with large margins b. A large volume of sales with no margins c. Low to no sales with low margins d. Low sales but with large margins
Which of these is the most likely impact of an increase in the wealth of consumers? a. The aggregate supply curve shifts outward
b. The aggregate demand curve shifts outward. c. The aggregate demand curve shifts inward. d. The aggregate supply curve shifts inward. e. Both the aggregate demand and aggregate supply curves shift inward.
The nominal interest rate is determined in the market for loanable funds
a. True b. False Indicate whether the statement is true or false