The basis for trade is absolute advantage, not comparative advantage

Indicate whether the statement is true or false


FALSE

Economics

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Which of the following is a negative effect of economic growth?

A) higher inflation B) environmental pollution C) higher unemployment D) all of the above

Economics

An increase in the liquidity of corporate bonds, other things being equal, shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds shifts to the ________

A) right; right B) right; left C) left; left D) left; right

Economics

For W to be an effective control variable in IV estimation, the following condition must hold

A) E(ui) = 0 B) E(ui|Zi,Wi) = E(ui|Wi) C) E(uiuj) ? 0 D) there must be an intercept in the regression

Economics

Assuming that the Federal Reserve Banks sell $40 million in government securities to commercial banks and the reserve ratio is 20 percent, then the effect will be to reduce:

A. Excess reserves by $8 million B. Excess reserves by $200 million C. The money supply by potentially $200 million D. The money supply by potentially $400 million

Economics