With the benefits of international trade:
a. there can be increased consumption for all.
b. global production will be increased.
c. world resources will be used more efficiently.
d. all of these are true.
QUESTION 2The real interest rate is the annual percentage amount of money that is earned on a sum loaned or deposited in a bank.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3International trade has the potential to ____ the availability of goods and services to ____.
a. increase; those nations who export more than they import
b. increase; nations that have an absolute advantage in the production of a good or service
c. increase; all nations
d. decrease; all nations
QUESTION 4Suppose George's income is 10,000 and he pays a tax of 1,000 . but Laura's income is 50,000 and she pays a tax of 4,000 . Such a tax is:
a. regressive.
b. progressive.
c. proportional.
d. flat.
QUESTION 5The real interest rate can be negative.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Specialization and trade allow an economy to expand its:
a. production possibilities. b. consumption possibilities.
c. technological advantage. d. absolute advantage.
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