41. When the Federal Reserve buys government securities on the open market, what effect does 39. Alana is saving money to put a down payment 40. How do individuals contribute to the circular this action have on the nation's money supply on her first house. She has saved $10,000 so far flow of economic activity? and aggregate demand? and deposited it in a savings account. What risk Money Supply Aggregate Demand of loss does she face? Businesses buy goods and services from A increases increases the risk that she will need the money for individuals an emergency before she is allowed to Businesses purchase productive Money Supply Aggregate Demand B withdraw it resources in product markets increases decreases the risk that the bank will close and her Individuals provide labor for factor Money Supply Aggregate Demand ownership stake in the bank will no longer markets and buy goods in product C be worth anything markets decreases Increases the risk that the bank will fail if too many Aggregate Demand people try to withdraw their savings at the Individuals buy productive resources from Money Supply D same time factor markets and provide labor for decreases decreases product markets the risk that the inflation rate will be OC higher than the interest rate the bank OB pays her on her deposit OA OD 42. Which of the following is the MOST important 44. According to the law of supply, producers are economic factor that might lead two countries to motivated to 46. In a market economy, the government trade with each other? provides public goods and services that the produce products similar to their private sector cannot be relied upon to supply. monetary deflation competitors' products. These may include all of the following EXCEPT absolute advantage offer their products at the lowest possible prices. environmental protection. monetary inflation sell more goods at higher prices than at public infrastructure. comparative advantage lower prices. law enforcement. increase product prices when there is low demand union organization. 19. Use the table to answer the question. 54. Which type of insurance protects employees Outputs of Japan and Saudi Arabia 52. When someone chooses criteria for post Cell phones Barrels of Oil from loss of income associated with work-related Japan 350 70 secondary eductional life choices and evaluates injuries? Saudi Arabia 500 250 those options using a weighted system, he or she Japan and Saudi Arabia both produce oil and cell used which of the following: phones and do not trade with each other. The O life insurance ntries are considering specializing in one product or the other and then trading with each a fitler model health insurance other. Would this benefit Japan and Saudi Arabia? Why or why not? a shotgun model unemployment insurance Specializing and trading would not benefit either country because the opportunity a rational decision model disability insurance cost of producing cell phones is the same in both countries. O a hour glass model Specializing and trading would benefit both countries because Japan has a comparative advantage in oil and Saud Arabia has a comparative advantage in cell phones. Specializing and trading would not benefit either country because the opportunity cost of producing oil is the same in both countries. Specializing and trading would benefit both countries because Japan has a comparative advantage in cell phones and Saudi Arabia has a comparative advantage in oil