Why is trade an important source of economic progress?
a. It allows the trading partners to produce a larger joint output through specialization in the areas where they have a comparative advantage.
b. It allows the trading partners to produce a larger joint output as the result of greater realization of cost reductions that accompany the adoption of mass production methods.
c. It makes it possible to realize gains from the discovery and dissemination of innovative products and production processes.
d. All of the above are correct.
D
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In the above table, the average propensity to save when disposable income is $5,000 is
A) -0.1. B) 0.1. C) 0.0. D) 0.2.
By providing workers with more machines, equipment and buildings to use in the production of goods, production would decrease
Indicate whether the statement is true or false
A tendency for a good to come into favor with consumers because other consumers have chosen to buy the item is
A) price-leadership. B) negative-sum game. C) positive market feedback. D) negative market feedback.
Suppose that the economy is currently at full employment. All other things being equal, if the government implements expansionary fiscal policy, then the appropriate monetary policy is
a. no change from the current policy. b. reduce the growth of the money supply. c. constant growth of the money supply. d. increase the growth of the money supply.