Countries tend to specialize in the production of goods in which they have a comparative advantage because
A) government officials calculate opportunity costs and suggest to people what they ought to produce.
B) people want to make a profit.
C) the Economic Development Office of the United Nations hires economic experts to calculate the opportunity costs of different goods in different countries and then suggests to countries what they ought to produce.
D) the United Nations hires economic experts to calculate the opportunity costs of different goods in different countries and then suggests to countries what they ought to produce.
E) none of the above
B
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What impact does expansionary monetary policy have on the short-run Phillips curve if consumers and firms expect the expansionary monetary policy to increase inflation?
A) The short-run Phillips curve is not affected by expansionary monetary policy. B) The short-run Phillips curve shifts down. C) The short-run Phillips curve shifts up. D) The short-run Phillips curve becomes the long-run Phillips curve.
The United States issues a $10,000 debt forgiveness to Argentina. How is this accounted for in the balance of payments?
A) financial account, U.S. asset import B) current account, Argentina transfer payment C) current account, U.S. service export D) financial account, U.S. asset export E) current account, Argentina good import
The demand for money is
A. negatively related to nominal GDP and positively related to the level of interest rates available on other financial assets. B. positively related to nominal gross domestic product (GDP) and to the level of interest rates available on other financial assets. C. negatively related to nominal GDP and to the level of interest rates available on other financial assets. D. positively related to nominal GDP and negatively related to the level of interest rates available on other financial assets.
A firm that must determine the price-output combination that maximizes profit because it faces a downward-sloped demand curve
A. has a perfectly inelastic demand curve. B. is a price-taker. C. is a price searcher. D. has a perfectly elastic demand curve.