Author: Anonymous

When the price of syrup increases, the demand for pancakes decreases. These goods are considered to be:

When the government decreases spending, the:

“If the price level increases in the U.S. relative to foreign countries, then American consumers will purchase more foreign goods & fewer U.S. goods.” This statement describes

To the economist, which is not considered to be Gross investment (Ig)?

Country A and Country B produce the same two products, backpacks and sweaters. Country A can produce a maximum of 60 backpacks or 40 sweaters, while Country B can produce a maximum of 40 backpacks or 20 sweaters.  Which country has the absolute advantage in producing backpacks? Explain using numbers.  What is the opportunity cost to produce a sweater in terms of backpacks in Country A? Which country, if either, has a comparative advantage in producing sweaters? Explain.  Internationally, if 1 sweater is traded for 1.75 backpacks, who will benefit from trading: Country A only, Country B only, both countries, or neither country? Explain.  Assume there is international trade. Can a country produce beyond its production possibilities curve (PPC)? Assume there is international trade. Can a country consume beyond its PPC?

In which economic system are the answers to the three economic questions left to producers and consumers and the forces of supply and demand?

All else constant, contractionary monetary policy will

According to the figure, in 2010, the natural unemployment rate was approximately:

Country A has a balance of $500,000 in its current account, $100,000 in its capital account, and $500,000 in its financial account. If workers from India sent $300,000 back to their families in India while residents in the United States bought $600,000 worth of goods from abroad in the same year, how do these transactions affect the Balance of Payment Accounts?

In the market for rice, the government sets a price ceiling below market equilibrium. With no other action taken, what will this create?