When each person specializes in producing the good in which he or she has a comparative advantage, total production in the economy
a. falls.
b. stays the same.
c. rises.
d. may fall, rise, or stay the same.
c
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What is the main cause of high inflation rates in middle and low income countries?
a. Citizens save most of their income lowering aggregate demand. b. Citizens spend most of their income pushing up prices. c. The government pays for its budget deficits by printing money. d. The government pays for its budget surplus by printing money.
A principle is a self-evident truth that most people readily understand and accept.
Answer the following statement true (T) or false (F)
Suppose that the price elasticity of demand for wheat is known to be -0.75. Will a good wheat crop (which increases the supply of wheat) be likely to increase or decrease the revenues of farmers? Carefully explain
What will be an ideal response?
Health insurance features that tend to reduce moral hazard include
a. deductibles. b. coinsurance c. copayments d. all of the above