According to the product life cycle model, comparative advantage
A) may move from one country to another as a product matures.
B) always stays in the country where a product is invented.
C) in agricultural or homogeneous manufactured goods is determined by the stage of the life cycle these products are in.
D) Both A and C.
A
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Which industry would be best characterized as monopolistically competitive?
A. business cloud-computing services B. smart-phone manufacturing C. web design consulting D. Internet-search sites
Which of the following would be a debit in the U.S. balance of payments?
a. the purchase of a Japanese car by an American b. the purchase of air service from a U.S. airline by a Japanese traveler c. a short-term loan extended to a Japanese manufacturer by a U.S. bank d. the purchase of U.S. grain by a Japanese bakery
The aggregate demand curve gives the
A. demand for goods and services by the government at various price levels. B. amount of all goods everyone wants to buy at various income levels. C. planned purchases for all goods and services in the economy, holding other things such as the price level constant. D. planned purchase rates for all goods and services in the economy at various price levels.
Monetary policy designed to counteract a reduction in aggregate demand might include
A. a reduction in the money stock. B. a reduction in short-term interest rates. C. an increase in individual income tax rates. D. increased government infrastructure spending.