Explain the business cycle by describing the phases and turning points
What will be an ideal response?
The business cycle has two phases, the expansion where GDP is increasing and the recession where GDP is declining for at least two consecutive quarters. There are two turning points, the peak, where an expansion ends and a recession begins, and the trough, where a recession ends and an expansion begins.
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A government regulation that bans the use of a certain polluting technology in the production of a good is an example of a ________ to solve an externality
A) social enforcement mechanism B) command and control approach C) market-based approach D) Coasian approach
An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.