The Ricardian model (with constant opportunity costs) predicts that a nation will ______________ in the production of the good it exports.

a. have a comparative disadvantage
b. develop shortages
c. lower the cost of production
d. specialize completely


Ans: d. specialize completely

Economics

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In the figure, the equilibrium price is initially $3 per bushel of wheat. If suppliers come to expect that the price of a bushel of wheat will rise in the future, but buyers do not, the current equilibrium price will

A) rise. B) not change. C) fall. D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.

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What is a repurchase agreement?

What will be an ideal response?

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Given that income is $300, the price of good Y is $15, and the price of good X is $20, what is the vertical intercept of the budget line?

A. 20 B. 4,500 C. 300 D. 15

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Monetarists argue that the relationship between:

A. The quantity of money the public wants to hold and the level of GDP is not stable B. The quantity of money the public wants to hold and the level of GDP is stable C. The quantity of money the public wants to hold and the level of saving is stable D. Velocity and the interest rate varies directly

Economics