12 terms

Final Econ101c

If the Fed wishes to increase the money supply it can:
Decrease the discount rate.
The policy lever most commonly used by the Fed is:
Buying and selling bonds.
If the Fed sells more bonds to the public, then the money supply will:
Decrease and the aggregate demand curve will shift to the left.
If a country has a trade deficit, it:
Imports more than it exports.
The amount by which the value of imports exceeds the value of exports in a given time period is a:
Trade deficit.
Specialization and trade:
Increase the standard of living.
Consumption possibilities refers to the:
Alternative combinations of goods and services that a country can consume.
Comparative advantage refers to a country's:
Ability to produce a specific good at a lower opportunity cost than another country.
If a country can produce rice with a lower opportunity cost than its trading partners, then it must have:
A comparative advantage in the production of rice.
Terms of trade refer to:
The rate at which goods are exchanged for one another.
Which of the following is the result of a tariff?
Greater domestic production.
A tariff on imported goods will cause:
A decrease in imports and an increase in domestic sales.