Specialization and trade can create more wealth (output of goods and services):
a. when we only trade for things we could not produce ourselves
b. when each person specializes in what they do relatively best and trade for the rest.
c. only if we gain and other countries lose.
d. only with certain nations.
b
Economics
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Because of the income effect, the labor supply curve is
A) eventually backward bending as wage rate increases. B) positively sloped. C) horizontal. D) vertical.
Economics
If potential GDP for the first quarter of 2013 = $75.8 billion, nominal GDP for the first quarter of 2013 = $80.3 billion, and the GDP deflator = 109, then the output gap was
A) 2.8%. B) 4.7%. C) 5.6%. D) 5.9%.
Economics