If a nation is incurring a trade deficit (it is buying more from abroad-importing, than it is selling abroad-exporting), then it is most likely producing beyond the frontier of its production possibilities curve.
Answer the following statement true (T) or false (F)
False
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If Molly Bee increases her work hours when her wage increases, then
A) the substitution effect of the wage increase outweighs the income effect. B) the income effect of the wage increase outweighs the substitution effect. C) leisure is an inferior good to Molly. D) Molly is spending beyond her means.
What is an economic theory or model? What constitutes a "good" economic theory or model?
Globalization decreases the interconnectedness between countries
a. True b. False Indicate whether the statement is true or false
If the economy is at full employment,
A) the only unemployment is frictional unemployment plus discouraged workers. B) all unemployment is cyclical and structural. C) real GDP equals potential GDP. D) the entire labor force is employed. E) the entire population is employed