If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product
Indicate whether the statement is true or false
FALSE
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The Fed raises the federal funds rate when it
A) fears inflation. B) wants to increase the quantity of money. C) fears recession. D) wants to encourage bank lending. E) cannot change the quantity of money.
In the figure above, the quantity of high-skilled labor employed is
A) 2,000 hours per day. B) 4,000 hours per day. C) 5,000 hours per day. D) 7,000 hours per day.
The labor demand curve slopes downward because
a. firms wish to hire fewer workers as the wage rate increases b. households wish to hire fewer workers as the wage rate decreases c. firms wish to hire more workers as the wage rate increases d. firms wish to supply fewer workers as the wage rate increases e. households wish to provide fewer hours of work as the wage rate decreases
An optimum currency union refers to the decision by a country to:
A) join a monetary union that best serves its self-interest. B) join a free trade area. C) dollarize its economy. D) eliminate tariffs.