Answer the following questions true (T) or false (F)
1. One reason a country does not specialize completely in production is that not all goods and services are traded internationally.
2. Trade only occurs if all individuals win, and no individuals lose, as a result of the trade.
3. One of the main sources of comparative advantage is internal economies.
1. TRUE
2. FALSE
3. FALSE
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A game with more than three players is called a community game
Indicate whether the statement is true or false
People who failed to look for a job are classified as
a. unemployed. b. underemployed. c. out of the labor force. d. part time employed.
As the size of a nation's outstanding debt gets larger and larger relative to the size of the economy,
a. eventually it will become difficult for the country to borrow in global credit markets. b. the country will have to pay higher real interest rates in order to induce investors to purchase its bonds. c. at some point, the country will be more or less forced to bring spending into line with revenues in order to maintain the confidence of investors. d. all of the above are correct.
A Japanese flour mill buys wheat from the United States and pays for it with yen. Other things the same, Japanese
a. net exports increase, and U.S. net capital outflow increases. b. net exports increase, and U.S. net capital outflow decreases. c. net exports decrease, and U.S. net capital outflow increases. d. net exports decrease, and U.S. net capital outflow decreases.