Both countries can benefit from trade when:
A. at least one country produces the good for which it has an absolute advantage.
B. each specializes in producing the good for which it has a comparative advantage.
C. each specializes in producing the good for which it has an absolute advantage.
D. there are no trade barriers that are erected by either country.
B. each specializes in producing the good for which it has a comparative advantage.
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The prices of all fixed-income assets (bonds)
A) are independent of the interest rate. B) are determined by the U.S. Treasury. C) vary directly with the interest rate. D) vary inversely with the interest rate.
Higher prices may serve the public interest when
A. there is a shortage of goods or services available. B. there is an equal distribution of traffic on alternate routes. C. higher prices never serve the public interest. D. lower prices signal scarcity.
Which of the following will not cause a short-run shift in the supply curve?
A) a change in the number of sellers B) a change in the cost of resources C) a change in the price of the product D) a change in future expectations
Contrary to most thinking, governments play ____ in causing pollution
a. almost no role b. a large but decreasing role c. a major role d. a reconstructive role