Canada is a major world producer and exporter of wheat and a great percent of its GDP is derived from this one good. That's both good news and bad news for Canada. The good news is
a. that other countries have less of a target to retaliate on but the bad news is that they are most likely to retaliate
b. that Canada can concentrate on principally one good but the bad news is that its comparative advantage changes when its absolute advantage changes
c. that Canada can concentrate on principally one good but the bad news is that its absolute advantage changes when its comparative advantage changes
d. that Canada gets substantial gains from trade but the bad news is that other countries may retaliate against all Canadian exports
e. that Canada gets substantial gains from trade but the bad news is that price changes in wheat can erode much of the gains
E
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The consumption function is relationship between consumption and:
A. total spending. B. investment. C. aggregate expenditure. D. disposable income.
The lower the nominal interest rate, the
A) greater the quantity of money supplied. B) greater the demand for money. C) smaller the demand for goods and services. D) smaller the quantity of money demanded. E) greater the quantity of money demanded.
Because the personal income tax is an automatic stabilizer,
a. inflationary gaps are impossible. b. the budget deficit grows during a recession. c. the deficit needed to cure a recessionary gap increases. d. the structural deficit grows during a recession. e. All of the above are correct.
What is a basic principle of the law of demand?
a. The higher the price, the more people will want the good. b. Everyone has a limited income that they will spend. c. When a good's price is lower, people will buy more of it. d. Services are of interest in the same way that goods are.