If a market economy was in a recession, which of the following would help direct it back toward the full employment rate of output?
a. an increase in the rate of inflation
b. lower resource prices and lower real interest rates
c. higher resource prices and higher real interest rates
d. a decrease in the natural rate of unemployment
B
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People:
a. tend to specialize in those activities in which their opportunity costs are minimum b. tend to specialize in those activities in which their opportunity costs are maximum. c. never consider opportunity costs while deciding which activities to specialize in. d. consider only direct costs while deciding which activities to specialize in. e. do not behave in their own self-interest.
One danger associated with calls for fairness based on reciprocity is that calls for fair trade may be invoked in cases where foreign restrictions on domestic exports do not actually exist
a. True b. False Indicate whether the statement is true or false