The term "capitalism" refers to which of the following?
a. A religion based on amassing capital.
b. An economic system characterized by private ownership of resources, and decentralized market allocation.
c. An economic system characterized by government ownership of resources and centralized allocation.
d. None of the above answers are correct.
b
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Assume two nations are involved in an arms race. They both assume that each faces two choices – sign disarmament accord or continue with military expansion and the building of more nuclear missiles
Explain using the prisoner's dilemma model why both of these nations will choose to escalate the arms race rather than choose bilateral disarmament. During the Cold War President Ronald Reagan was quoted as saying that the United States will "trust, but verify" when discussing nuclear nonproliferation agreements between the U.S. and the Soviet Union. How does this relate to your answer to the first part of this question?
Help in financing our federal budget deficit comes from a ________ amount of net exports, which is called ________
A) negative, net foreign investment B) negative, foreign borrowing C) positive, net foreign investment D) positive, foreign borrowing
If domestic residents are restricted in their ability to purchase foreign assets then their government is imposing:
A. controls on capital outflows. B. controls on both capital inflows and outflows. C. fixed exchange rates. D. controls on capital inflows.
When the money supply increases
a. interest rates fall and so aggregate demand shifts right. b. interest rates fall and so aggregate demand shifts left. c. interest rates rise and so aggregate demand shifts right. d. interest rates rise and so aggregate demand shifts left.