An important determinant of comparative advantage is:
A. equal technology levels across nations.
B. well established governmental regulations on trade.
C. homogeneity of climate and natural resources between countries.
D. endowment of factors of production.
Answer: D
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There is some evidence that if inflation can be held to moderate levels of less than what percentage per year, it need not prevent a nation’s real economy from growing at a healthy pace?
a. 2% b. 3% c. 4% d. 5%
Assuming purchasing-power parity holds and that over a period of five years the dollar had appreciated relative to the currency of Country X, what would explain the appreciation of the dollar?
The Supreme Court's decision in the Standard Oil of New Jersey case was
A) to force the company to send refund checks to customers.
B) to force the company to pay $10 billion in fines.
C) to increase the fine imposed by a lower court.
D) to break up the company.
Social Security and Medicare are examples of
A) capitalism. B) free market functions. C) market failures. D) governmental interventions.