Inferior goods are characterized by _____ demand as a result of increased income.
A. significantly higher
B. slightly higher
C. no change in
D. lower
Answer: D
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Given an upward sloping aggregate supply curve, which of the following changes in the aggregate demand curve is observed when the Fed reduces the money supply?
a. The aggregate demand curve shifts leftward, lowering real GDP and the price level b. The aggregate demand curve shifts leftward, raising real GDP and the price level. c. The aggregate demand curve shifts leftward, lowering real GDP but raising the price level. d. The aggregate demand curve shifts rightward, raising real GDP and the price level. e. The aggregate demand curve shifts rightward, lowering real GDP but raising the price level.
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
If the other island's delegate offers to give you 2 fish for every 1 coconut you give them, you will:
A. refuse their offer because the opportunity cost to you of a coconut is less than 2 fish. B. accept their offer because you do not have an absolute advantage in fish. C. accept their offer because you do not have the comparative advantage in fish. D. refuse their offer because the opportunity cost to you of a coconut is more than 2 fish.
Trade sanctions were effective in getting Iran to give up its nuclear missile program.
Answer the following statement true (T) or false (F)
Recall the Application about productivity in the nation of Latvia in the 1990s to answer the following question(s). According to this Application, in the 1990s EU countries had ________ in the production of all products compared to Latvia.
A. an absolute advantage and a comparative advantage B. an absolute advantage but not a comparative advantage C. a comparative advantage but not an absolute advantage D. neither an absolute advantage nor a comparative advantage