A country will gain relatively more from trade when
A) trade is regulated.
B) the world price is close to the country's opportunity cost of the good.
C) the world price is below the country's opportunity cost of the good.
D) the world price is much greater than the country's opportunity cost for the good.
D
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The percentage of retired older workers has increased dramatically since the introduction of Social Security.
A. True B. False C. Uncertain
Following a decrease in the price of a good, an individual will purchase more of the now less expensive good and less of other more expensive goods. This is known as the _____ effect
a. income b. endowment c. substitution d. price e. scale
The economy is:
A. complex, and it operates under uncertain rules. B. complex, though it operates under clear rules. C. simple, and it operates under clear rules. D. simple, though it operates under uncertain rules.
One of the tools of monetary policy is to change the discount rate. Since 2003
A. the Fed has pegged the discount rate to the reserve requirement. B. the Fed has kept the discount rate a fixed amount above the federal funds rate. C. the Fed has not changed the discount rate. D. the Fed has kept the federal funds rate one percentage point above the discount rate.