Suppose a small country experiences economic growth which leads to an increased willingness to trade. The country's terms of trade will ________ because the prices of its exports will ________ relative to the price that it has to pay for its imports.
A. worsen; fall
B. remain constant; fall
C. improve; not change
D. be unaffected; not change
Answer: D
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Which of the following is an advantage of starting a new business as a partnership?
A) Business profits are not taxed. B) A partnership has few government rules and regulations to comply with. C) The owners have limited personal liability. D) A partnership can easily attain additional funding.
A tax rebate, like the one issued in 2008, is likely to ________ consumption spending ________ than would a permanent tax cut
A) increase; more B) decrease; more C) increase; less D) decrease; less
The tools of the Federal Reserve include
A) reserve requirements. B) the discount rate. C) open market operations. D) all of these choices.
The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and
a. society's preferences. b. the available production technology. c. a fair distribution of the output. d. the available demand for the output.