If there are high transportation costs
a. the terms of trade will also be high
b. the result could be incomplete specialization
c. large countries will have an advantage in trading with small countries
d. small countries will have an advantage in trading with large countries
e. trade will be based on absolute advantage rather than comparative advantage
B
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A good is said to be a normal good when
a. decreases in income lead to an increase in demand for the good b. decreases in income lead to a decrease in demand for the good c. increases in income lead to a decrease in demand for the good d. increases in price lead to a decrease in the quantity demanded of the good e. increases in price lead to a decrease in demand for the good
In the early 1980s, the government used fiscal policy to fight a recession by ______.
a. increasing tax rates b. lowering tax rates c. limiting government spending d. suspending unemployment benefits
During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ________ the money supply, which will put ________ pressure on nominal interest rates.
A. increase; upward B. decrease; upward C. increase; downward D. decrease; downward
Productivity
A. Falls when the value of output rises relative to the cost of inputs. B. Falls when factors of production cost more. C. Rises when the ratio of output to input increases. D. Rises when the value of output rises relative to the cost of inputs.