Total world output can increase without the addition of resources if
A. countries specialize in the product in which they have an absolute advantage and trade for products in which they have an absolute disadvantage.
B. countries specialize in the product in which they have a comparative advantage and trade for products in which they have a comparative disadvantage.
C. countries impose tariffs on the goods in which they have a comparative advantage.
D. countries replace tariffs with quotas.
B. countries specialize in the product in which they have a comparative advantage and trade for products in
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If two bundles are on the same indifference curve, then
A) the consumer derives the same level of utility from each. B) the consumer derives the same level of ordinal utility from each but not the same level of cardinal utility. C) no comparison can be made between the two bundles since utility cannot really be measured. D) B and C.
Which of the following would be included as investment in the GDP accounts?
a. the government buys goods from another country b. someone buys stock in an American company c. a firm increases its capital stock d. All of the above are correct.
A document describing how much profit or loss was earned by a business over a given length of time is called
a. a balance sheet b. an income statement c. a statement of cash flows d. a profit-and-loss statement
The equation E$/£ = 2 means that:
a. one dollar buys 2 pounds. b. one dollar buys 1/2 a pound. c. 2 pounds buy one dollar. d. one dollar buys one pound.