When countries have different comparative advantages, the total gains from trade for all countries are larger than losses from trade.
a. true
b. false
Ans: a. true
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To make sure that no one group could dominate the direction of monetary policy, the 1913 Federal Reserve Act diffused power in all of the following ways except
A) geographically. B) between the public and private sectors. C) internationally. D) within the government.
A natural monopoly has _________, but will __________ if left unregulated
a. exclusive access to a natural resource; price competitively b. exclusive access to a natural resource; not maximize profit c. low average total cost; have high marginal costs d. low average total cost; charge a high price e. low average total cost; undercut its competitors
A characteristic of a good model is that
A. it predicts perfectly. B. it applies to all situations. C. it is useful for making irrefutable predictions. D. its predictions can be tested using real-world data.
Brinley holds stock in large high-tech companies in his portfolio. The best way for Brinley to diversify his risk would be to buy:
A. more shares of the stock he already owns. B. shares in other large high-tech companies. C. bonds or stocks of small and medium-sized companies. D. bonds from the large high-tech companies already in his portfolio.