Nations will attract investment and its citizens will engage in productive activities when the institutions and policies of that country
a. encourage market exchange.
b. reward innovation.
c. protect people and their property.
d. all of the above.
D
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When an asset enables people to transfer purchasing power into the future it serves the function of a ________
A) store of value B) unit of account C) means of deferred payment D) medium of exchange
Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFs. Then, Liz suggests that they specialize and trade. She would produces only smoothies and Joe would produce only salads
Then she would sell 10 smoothies to Joe at a price of 2.5 salads per smoothie. In this scenario, A) Liz gains 10 smoothies and 5 salads, and Joe gains 5 smoothies. B) Liz gains 5 smoothies, and Joe gains 10 smoothies. C) Liz gains 10 smoothies, and Joe loses 5 smoothies. D) Liz gains 5 smoothies and 5 salads, and Joe loses 5 salads. E) Neither of the individuals gains from trade.
When y changes, x stays the same. The line depicting this relationship would be
A) vertical. B) horizontal. C) linear with a negative slope. D) linear with a positive slope.
Which two time periods did the U.S. begin to experience a sharp increase in Current Account deficits?
A) 1981, mid-1990s B) 1971, mid-1990s C) 1961, mid-1990s D) 1971, mid-1980s E) 1985, mid-1990s