The law of comparative advantage explains why
A. individuals choose specialized careers.
B. firms specialize in the production of certain goods.
C. nations develop strengths in certain industries.
D. All of the responses are correct.
Answer: D
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Refer to Figure 9.1. Assume the economy is initially at point A
Following the initial change in short-run equilibrium resulting from a recession caused by an increase in oil prices, the end of the recession is best represented by which long-run equilibrium combination of price level and real GDP? A) P1; Y1 B) P3; Y3 C) P1; Y3 D) P3; Y1
Increases in both human capital per worker and physical capital per worker increase productivity
a. True b. False Indicate whether the statement is true or false
You are the manager of a monopoly that faces a demand curve described by P = 230 ? 20Q. Your costs are C = 5 + 30Q. Your firm's maximum profits are:
A. 475. B. 495. C. 415. D. 480.
Other things being equal, an expansion of commercial bank lending:
A. is desirable during a period of demand-pull inflation. B. increases the money supply. C. reduces the money supply. D. changes the composition, but not the size, of the money supply.