To exercise the law of comparative advantage, a nation
a. must produce some goods using fewer resources than its trading partner.
b. does not have to produce any goods using fewer resources than its trading partner.
c. must produce some goods on an equal footing with its trading partner.
d. must show a lower absolute cost of production than its trading partner.
b. does not have to produce any goods using fewer resources than its trading partner.
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________ a large number of firms competing by making similar but slightly different products
A) Monopoly requires B) Perfect competition requires C) Monopolistic competition requires D) Oligopoly requires E) Both perfect competition and monopolistic competition require
A financial institution that accepts deposits, makes loans, and offers checking accounts is
A) an insurance company. B) the Federal Deposit Insurance Corporation. C) the Federal Reserve System. D) a commercial bank.
A multinational agency that specializes in making loans to a larger number of developing nations to promote long-term development and growth is
A. the International Bank. B. the World Bank. C. the World Monetary Fund. D. the International Monetary Fund.
Market failure implies that the market mechanism
A. Causes shortages or surpluses in the market. B. Leads the economy to a point outside the production possibilities curve. C. Causes government failure. D. Leads the economy to the wrong mix of output.