Open Market Operations occur when a Central Bank:
(a) Reduces spending.
(b) Buys and sells bonds and securities.
(c) Increases taxation.
(d) Increases the exchange rate.
Answer: (b) Buys and sells bonds and securities.
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Which of the following is counted as a benefit from international trade?
A) New production processes developed in one nation are transmitted to others. B) Intellectual property such as music and computer applications is introduced throughout the world. C) New goods have been introduced to other parts of the world. D) All of the above are benefits from international trade.
Compared to the poverty rate for blacks, the poverty rate for whites is a fraction of less than ______.
Fill in the blank(s) with the appropriate word(s).
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.
Monopolistic competition may lead to each of the following except
A. inefficiency. B. over-differentiation. C. long-run break-even. D. monopoly profits.