Refer to Table 2-5. Does either Estonia or Finland have an absolute advantage and if so, in what product?
A) Estonia has an absolute advantage in lumber.
B) Finland has an absolute advantage in both products.
C) Finland has an absolute advantage in lumber.
D) Estonia has an absolute advantage in cell phones.
B
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In the case of banks, "living wills" spell out:
A) how a bank would sell its assets and pay of its creditors in the event of shutdown. B) the amount of bank resources to be retained as stockholders' equity. C) the long term business development plans of systematically important financial institutions. D) the balance sheet of systemically important financial institutions.
________ is likely to result in an increase in the total efficiency units of labor in an economy
A) A decrease in the capital-labor ratio in the economy B) An increase in the unemployment rate in the economy C) A decrease in the labor force participation rate in the economy D) An increase in the productivity of each worker in the country
Which of the following statements is correct?
A. Because it is subject to change, and frequently does, consumer and business confidence has only a minimal impact on future economic activity. B. Because it has historically remained steady, consumer and business confidence has only a minimal impact on future economic activity. C. Consumer and business confidence is extremely important and can have a great impact on future economic activity. D. Consumer confidence is extremely important and can have a great impact on future economic activity. The same is not true of business confidence.
In the above figure, is the Fed likely to be afraid that inflation will occur or that a recession will occur? Discuss the appropriate monetary policy that should be made to restore the economy to potential GDP
What will be an ideal response?