Free trade allows the people of a country to consume outside their production possibility frontier.
Answer the following statement true (T) or false (F)
True
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Which of the following is the most fundamental function of government?
a. protection of individuals and their property b. imposing progressive taxes to fund income-transfer programs c. regulating prices and wages d. provision of postal services and garbage collection
When a competitive price-searcher market is in long-run equilibrium, the firms in the market will earn
a. substantial economic profits. b. zero economic profits. c. significant economic losses. d. an above-normal accounting rate of return.
Which of the following is true of dependent variables?
A. A dependent variable can only have a numerical value. B. A dependent variable cannot have more than 2 values. C. A dependent variable can be binary. D. A dependent variable cannot have a qualitative meaning.
Unlike demand-pull inflation, cost-push inflation:
A. is self-limiting. B. drives up the price level. C. increases nominal income. D. increases real income.