If the government cuts income taxes, then the
a. investment curve will shift upward
b. investment curve will shift downward
c. consumption curve will shift downward
d. consumption curve will shift upward
e. economy will move to a new point along the existing consumption curve
D
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Paper money is fiat money because it has been declared by government as a means of exchange
a. True b. False Indicate whether the statement is true or false
Assume there are only two countries in the world, Pacifica and Atlantica. Both countries produce and consume surfboards. The pre-trade price of surfboards in Atlantica is lower than the pre-trade price of surfboards in Pacifica. Draw a three-graph diagram to depict the Pacifica, Atlantica, and international markets for surfboards illustrating the pre-trade price difference. Now assume that free trade opens up between Pacifica and Atlantica. Depict a plausible world price in the graphs. Using one of the three graphs below, show what happens to overall economic welfare in the two countries. Be sure to label and refer to the graphs in your answer.
What will be an ideal response?
What is labor productivity? How does a country's standard of living relate to labor productivity?
What will be an ideal response?
The market demand curve shows how the quantity demanded of a product, during a specified time period, changes as the price of that product changes.
Answer the following statement true (T) or false (F)