The fundamental force driving international trade is comparative _______
A. advantage: a country exports those goods that have high prices
B. abundance: the country that produces more than it needs exports the good
C. advantage: the country with the lower opportunity cost of production exports the good
D. cost: a country trades with other countries that produce cheaper goods
C Trade according to comparative advantage maximizes the gains from trade.
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The figure above shows depicts the marginal revenue and costs of a perfectly competitive firm. The price the firm charges is
A) $4 per unit. B) $8 per unit. C) $16 per unit. D) None of the above answers is correct.
Over time Americans have chosen to cook less at home and dine out more. This change in behavior:
A) increases GDP. B) reduces GDP. C) does not affect GDP. D) none of the above
Two-thirds of sales tax revenues are collected by _____
a. the federal government b. state governments c. county governments d. city governments
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and net nonreserve international borrowing/lending balancein the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to
complete equilibrium. a. The real risk-free interest rate rises and net nonreserve international borrowing/lending balance becomes more positive (or less negative). b. The real risk-free interest rate remains the same and net nonreserve international borrowing/lending balance becomes more negative (or less positive). c. The real risk-free interest rate rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive). d. The real risk-free interest rate and net nonreserve international borrowing/lending balanceremain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.