If Israel has a lower opportunity cost producing oranges than Canada, then compared to Canada's orange production, it
a. is less efficient in producing other goods
b. has an absolute advantage producing oranges
c. cannot export oranges to other countries successfully
d. has a comparative advantage producing oranges
e. will have reason to import oranges
D
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Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets
What will be an ideal response?
Which of the following is not a phase or turning point of the business cycle?
A) recession B) expansion C) shutdown D) trough
Supporters of Federal Reserve independence contend that independence from the rest of the federal government leads to lower
A) inflation rates. B) interest rates. C) reserve requirements. D) rates of unemployment.
When the government considers whether it should change its spending in response to a recession, it must weigh the tradeoff between ____________ and ________________.
A. faster recovery time; inflation B. less output; higher prices C. more output; lower prices D. faster recovery time; lower prices