Economies that are more open seem generally to be economies that grow faster. How might this be explained?
What will be an ideal response?
The answer should draw on Figure 12-3 which suggests possible explanations running from trade to growth, from growth to trade, and from outside factors to both.
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Real income is redistributed from ________ in the case of ________ deflation
A) creditors to debtors, anticipated B) creditors to debtors, unanticipated C) debtors to creditors, anticipated D) debtors to creditors, unanticipated
In retaliation for U.S. support for Israel during the Arab-Israeli War, OPEC countries stopped selling oil to the United States. For the United States, this embargo caused the
a. demand curve for oil to shift out. b. demand curve for oil to shift in. c. supply curve of oil to shift out. d. supply curve of oil to shift in.
In a market economy,
a. there is a fixed economic pie to be divided among individuals. b. differences in incomes provide individuals with an incentive to supply resources that are highly valued by others. c. a central distributing agency carves up the economic pie and allocates slices to individuals. d. both a and b above are true.
Consider a small family wheat farm. List some examples of implicit costs of farming