Let's play Jeopardy. The answer is: Because more goods are produced at lower prices and no country loses. The question is:
a. Why do countries engage in dumping?
b. Why do countries retaliate?
c. Why do nations trade?
d. Why is comparative advantage preferred to absolute advantage?
e. Why is absolute advantage preferred to comparative advantage?
C
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In a business cycle, the date at which a recession starts is called a trough
Indicate whether the statement is true or false
Economic information
a. is usually scarce and costly to acquire b. is usually available free to any decision maker c. is usually not required for rational decision making d. must be complete before any decision is made e. is usually useful only to governments
Suppose an economy has an upward-sloping AS curve and an inflationary gap equal to $10 billion. If AD shifts to the left by $10 billion,
A. The inflationary gap will be eliminated. B. A recessionary gap will be created. C. Real output will fall by $10 billion. D. Real output will fall by less than $10 billion.
A fiduciary monetary system means
A. that money is legal tender. B. that the currency is backed by implicit faith in government. C. that the value of each currency is determined by the amount of gold held by each nation. D. that money has commodity value.