If the U.S. could produce 5 televisions per hour of labor and China could produce 3 televisions per hour of labor, would it necessarily follow that the U.S. should specialize in television production? Explain your answer using the concepts of comparative and or absolute advantage
No. Although the U.S. has an absolute advantage, it might not have a comparative advantage.
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If government expenditures on goods and services increases by $20 billion, then aggregate demand
A) increases by $20 billion. B) increases by more than $20 billion. C) decreases by $20 billion. D) increases by less than $20 billion. E) decreases by more than $20 billion.
An increase the expected future price of a good
A) increases its demand. B) decreases its demand. C) increases its supply. D) has no effect on either its demand or its supply.
Subsidiarity requires nations to give up some of their national sovereignty
Indicate whether the statement is true or false
When a good is put onto the global market at a price below the cost to produce it, this is known as
A) the infant-industry argument. B) dumping. C) a quota. D) protection of domestic jobs.