If Evan has an absolute advantage in cleaning and bookkeeping when compared to Gloria, then
a. Evan must also have a comparative advantage in cleaning and bookkeeping
b. Evan must have a comparative advantage in cleaning
c. Evan must have a comparative advantage in bookkeeping
d. Gloria has a comparative advantage in neither activity
e. we can conclude nothing about comparative advantage
E
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An increase in the currency drain ratio
A) decreases the monetary base. B) increases the quantity of money. C) increases bank reserves. D) does not change the amount of the monetary base. E) does not change the quantity of money.
Which of the following will bring about an inward shift of a production possibilities curve [PPC]?
a. A decrease in the amount of resource employment b. An increase in the working-age population c. An increase in unemployment d. A decrease in the availability of natural resources e. An increase in the amount of capital available
If the marginal rate of substitution between future and current consumption is less than one, then this consumer exhibits
A. a positive time preference. B. a negative time preference. C. an increasing preference. D. a neutral time preference.
If countries decide they will no longer buy U.S. assets or lend to the United States:
A. adjustments will be set in motion to equalize comparative advantages. B. the United States can begin to run a trade deficit. C. adjustments will be set in motion so that the United States has more comparative advantages. D. There is no reason foreign countries will not want to buy more U.S. assets than the United States buys of foreign assets.