Refer to the data below. Which of the following statements about the two nations is correct based on the principle of comparative advantage?
Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.
A. East should specialize in the production of food
B. West has a comparative advantage in the production of clothing
C. West has a comparative advantage in the production of food
D. West should specialize in the production of clothing
C. West has a comparative advantage in the production of food
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At any point in time, a single bank can loan an amount equal to
A) its excess reserves. B) its required reserves. C) its government securities. D) the amount of loans the bank made in the past. E) its total reserves.
Fiscal policy is
a. the deliberate control of the money supply to achieve macroeconomic goals. b. the use of the government's regulatory powers to improve economic efficiency. c. the operation of business enterprises by the government. d. the use of government taxation and expenditures to achieve macroeconomic goals.
At the equilibrium price of a good, the good will be sold by those sellers
a. whose cost is more than price. b. whose cost is less than price. c. that can produce the good. d. enter the market first.
Recent productivity acceleration has been
What will be an ideal response?