You passed this Milestone20 questions were answered correctly.1 question was answered incorrectly.
1Which of the following statements corresponds to a trade barrier?
Mutual gains from this assume full employment.When unemployment is low, the opportunity cost of production becomes zero because resources are available that are otherwise not being utilized.In this situation, a country must give up the chance to produce one good for another.Most economists agree this is not a good idea when the economy is at full employment.CONCEPTAnalysis Trade Barriers
2Which statement below regarding the stagflation of the late 1970s/early 1980s is true?
CONCEPTPros and Cons of Monetary and Fiscal Policy