The theory of comparative advantage implies that
A. the United States could have a comparative disadvantage in producing all goods and services.
B. two countries can have a comparative advantage in production of the same good.
C. the world gains from trade since it allows production to move to the countries where their opportunity cost is lowest.
D. the country with the comparative advantage also has an absolute advantage.
C. the world gains from trade since it allows production to move to the countries where their opportunity cost is lowest.
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Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the
A) expected inflation rate is 8 percent. B) inflation rate is 2.8 percent. C) expected inflation rate is 2.8 percent. D) inflation rate is 8 percent. E) inflation rate is 108 percent.
The United States Postal Service is an example of a monopoly created by
a. government franchise. b. copyright. c. control of scarce inputs. d. rent-seeking behavior.
The Fed increases reserves if it conducts open market
a. purchases or auctions term credit. b. purchases but not if it auctions term credit c. sales or auctions term credit d. sales but not if it auctions term credit
All of the following have contributed to rising medical care costs EXCEPT
A. rapid technological progress. B. increasing occurrences of expensive communicable disease. C. the aging of the population. D. third parties paying for most medical expenses.