If a nation has an absolute advantage in the production of some commodity, it
A. can gain only if it has a comparative advantage in the commodity.
B. may still gain from trade in the commodity.
C. cannot gain from trade in the commodity.
D. cannot gain unless it has an absolute advantage in every other commodity.
Answer: B
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To the options buyer, the premium paid for the contract represents the
A) maximum return. B) largest potential loss. C) yield. D) transaction cost.
The reason for the different in tax policy and spending policy by the government is due to:
A. people not responding to tax policy as much as spending policy. B. the fact that when the government engages in spending policy, they do it more aggressively. C. firms drastically responding to tax changes that are implemented. D. the difference in initial spending that results from engaging in tax policy.
Suppose Wrentham Gold Miners & Co chooses the quantity of gold each of its mines will produce over the next 12 months. Assuming the market price of gold remains constant over the period, identify the correct statement about the firm's total revenue. a. Total revenue will vary with the price charged by the firm
b. Total revenue will be maximized when market price is less than average variable cost. c. The total revenue curve of the firm will be U-shaped. d. Total revenue will vary with the quantity produced by the firm.
An increase in inflation expectations shifts the short-run Phillips curve right and has no effect on the long-run Phillips curve
a. True b. False Indicate whether the statement is true or false