A decrease in Social Security payments will
What will be an ideal response?
decrease consumption spending
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An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each
However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country). Are there in fact gains from trade for the world as a whole? Explain.
In the 1970s, the U.S. relied on Command-and-Control models of pollution regulation.
A. True B. False C. Uncertain
A nation's GDP can be calculated as
A. The sum of value added and intermediate goods. B. The total value added at all stages of production. C. PI plus depreciation. D. NI plus depreciation.
If a firm is forced to take external costs into account, it will
A) reduce production and charge a higher market price. B) increase production and charge a lower market price. C) reduce prices and hire more workers. D) reduce prices and hire fewer workers.