You should specialize in the production of a good if you have
A) an absolute advantage.
B) more capital resources than your trading partner.
C) more human resources than your trading partner.
D) a comparative advantage.
D
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If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?
A) 30 percent B) 13.6 percent C) 12.2 percent D) 20 percent
Which of the following would cause the short-run aggregate supply curve to shift to the left?
A) an increase in inflation expectations B) a decrease in interest rates C) a technological advance D) an increase in the price level
Explain how the market for gasoline would react to this price ceiling if the oil-producing nations increased production and drove the equilibrium price of gasoline to $2.50 a gallon. Would the U.S. gasoline market be effi-cient?
What will be an ideal response?
With capital on the vertical axis and labor on the horizontal axis, vertical isoquants imply that
A) capital and labor are perfect substitutes. B) capital and labor must be used together in a certain proportion. C) capital is not productive. D) labor is not productive.