From 1990 to 2013, mortality under age 5 has ________ and the literacy rate has ________ in China.
A. increased; decreased
B. decreased; increased
C. decreased; decreased
D. increased; increased
Answer: B
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Your electrician accepts payment only in cash in order to avoid taxes. If you pay him $100, ________
A) the GDP of your country will increase B) the GDP of your country will remain unchanged C) the trade surplus of your country will increase D) the GDP of your country will fall
The Ricardian two-country two-good model predicts that there are potential benefits from trade, but NOT
A) the effect of trade on income distribution. B) the mechanism that determines which country will specialize in which good. C) when one country has an absolute advantage in the production of both goods. D) when one country has significantly lower wages than the other country. E) when both countries have the same types of technology available.
When the Phillips curve was first formulated (late 1960s), many economists thought that it showed a
A. “menu” of budget deficits from different budget policies. B. “menu” of possible choices available to policymakers. C. guide to the appropriate mix of fiscal and monetary policy. D. guide of political reactions to economic policy.
Bank of Roseland has $700 million in deposits. The required reserve ratio is 15%. Bank of Roseland must keep ________ in reserves.
A. $55 million B. $85 million C. $105 million D. $140 million