Taken collectively, people in nations that engage in international trade are not likely to:
A) consume more than they were able to consume in the absence of trade.
B) increase their standards of living.
C) gain from lower opportunity costs of production.
D) be made worse off.
Ans: D) be made worse off.
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If the value of the government multiplier is 1.5, which of the following is likely to be true if all other variables remain unchanged?
A) A $1 increase in government expenditure reduces gross domestic product by $1.50. B) A $1.50 increase in government expenditure increases gross domestic product by $1.50. C) A $1.50 increase in government expenditure reduces gross domestic product by $1.50. D) A $1 increase in government expenditure increases gross domestic product by $1.50.
Rich and poor people have which of the following in common?
A) Scarcity B) Economizing behavior C) Pursuing the plans and projects in which they are interested D) All of the above. E) None of the above.