International trade can be mutually advantageous because it
a. encourages the adoption of sound institutions and policies.
b. reduces the competitiveness of domestic industries and, thereby, makes it easier for the domestic producers to raise their prices.
c. permits the trading partners to take advantage of reductions in per-unit costs in industries where economies of scale are important.
d. does all of the above.
e. does both a and c.
E
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The amount of time it takes for fiscal policy to have an impact on the economy creates:
A. an information lag. B. a formulation lag. C. an implementation lag. D. a direction lag.
Total revenue is:
A. the amount that an individual gets paid over a specified period of time, typically annually. B. the quantity sold multiplied by the price paid for each unit. C. the amount that a firm spends on all inputs that go into producing a good or service. D. the quantity produced multiplied by the cost of producing each unit.
According to the rule of 70, if a person's saving doubles in 10 years, what interest rate were they earning?
a. 3.5 b. 7 c. 14 d. None of the above is correct.
Which statement is an objection of using the Consumer Price Index (CPI) to measure changes in the cost of living?
A. The calculated inflation rate is only accurate for an individual who purchases all the goods and services in the basket. B. The inflation rate is always understated due to substitution bias.