Which of the following is a false statement about absolute and comparative advantage?
a. Comparative advantage is the basis for gains from trade.
b. It is possible for one country to have the absolute advantage in all goods.
c. It is possible for one country to have the comparative advantage in all goods.
d. To find comparative advantage, you need to consider opportunity cost.
e. All of these statements are true.
c. It is possible for one country to have the comparative advantage in all goods.
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Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9, and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5 . Given the above information, a. the marginal cost of the third unit is greater than the marginal cost of the first unit. b. the marginal cost of the fourth unit is the same as the marginal cost of the
second unit. c. the average variable cost of four units is the same as for three units. d. both (b) and (c) are correct.
The central bank of the United States is:
A. the Federal Reserve System B. the U.S. Treasury C. Citibank D. the Bank of America
Which of the following statements is true?
A. Both nominal and real interest rates are procyclical and lagging. B. Both nominal and real interest rates are procyclical and leading. C. Nominal interest rates are procyclical and real interest rates are countercyclical. D. Nominal interest rates are procyclical and real interest rates are acyclical.
In order to increase their rate of economic growth, most poor countries need to:
A. establish political stability and the rule of law B. obtain greater financial support from rich countries C. extract more of the natural resources that lie within their borders D. maintain the structural macroeconomic policies that they began to implement after World War II