When a country has the ability to produce more of a good than others with a given amount of resources, they:
A. have an absolute advantage.
B. have a comparative advantage.
C. are free-traders.
D. should remain self-sufficient.
A. have an absolute advantage.
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List four things considered to be shortcomings in the determination of GDP in relation to the use of GDP as a measure of welfare
What will be an ideal response?
Fluctuations in the current account balance are mainly the result of fluctuations in
A) net interest. B) net exports. C) foreign reserves. D) net transfers. E) imports of capital.
Why are perfectly competitive markets considered efficient?
What will be an ideal response?
The effect of a tariff or a quota is to
a. raise the price of a commodity in the exporting country above the price in an importing country. b. raise the price of a commodity in an importing country above the price in the exporting country. c. lower the price of the commodity in all countries. d. raise the price of the commodity in all countries.