Which of the following is true?
A. A nation cannot have a comparative advantage in the production of every good.
B. A nation cannot have an absolute advantage in the production of every good.
C. A nation can have a comparative advantage in the production of every good, but not an absolute advantage.
D. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage.
E. A nation cannot have an absolute advantage in the production of a good unless it also has a comparative advantage.
Answer: A
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a. rightward b. leftward c. upward d. downward
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A. decrease, thus decreasing aggregate demand and partially offsetting the fiscal policy. B. increase, thus decreasing aggregate demand and partially offsetting the fiscal policy. C. increase, thus increasing aggregate demand and partially reinforcing the fiscal policy. D. decrease, thus increasing aggregate demand and partially offsetting the fiscal policy.
A perfectly competitive firm is selling 300 units of output at $4 each. At this output level, total fixed cost is $100 and total variable cost is $500. The firm
A) is maximizing its profit. B) is earning a profit, but not necessarily the maximum profit. C) is experiencing an economic loss. D) should shut down.
The ________ in the labor-force participation rate since 1970 is among prime-age women.
A. smallest decrease B. smallest increase C. largest increase D. largest decrease