The principle of comparative advantage implies that
A. most people are harmed by trade.
B. we should limit the extent to which people specialize.
C. only wealthy countries ultimately can benefit from international trade.
D. every country can benefit from international trade.
Answer: D
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An increase in the expected price level shifts short-run aggregate supply to the
a. right, and an increase in the actual price level shifts short-run aggregate supply to the right. b. right, and an increase in the actual price level does not shift short-run aggregate supply. c. left, and an increase in the actual price level shifts short-run aggregate supply to the left. d. left, and an increase in the actual price level does not shift short-run aggregate supply.
Ceteris paribus, if interest rates in the United States rise relative to those abroad, then the surplus in the U.S. capital account would
A. Become smaller and the dollar would depreciate. B. Grow larger and the dollar would depreciate. C. Grow larger and the dollar would appreciate. D. Become smaller and the dollar would appreciate.
Saving differs from savings in that
A. saving is a flow while savings is a stock. B. saving is both a flow and a stock while savings is a stock. C. saving is a stock while savings is a flow. D. saving is a stock while savings is both a flow and a stock.
In the late 1990s, the Asian crisis reduced the demand for U.S. farm products, which weakened farm prices.
Answer the following statement true (T) or false (F)