Which of the following observations is true of the principle of comparative advantage?
a. It arises from the absolute cost advantage.
b. It helps determine most efficient patterns of production.
c. It was advanced by Adam Smith.
d. It means producing a good using smaller quantities of resources than others.
b
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What was the approximate value of the U.S. current account balance in 2011?
A) +$10 billion B) +$79 billion C) -$380 billion D) -$475 billion
The Social Security program is primarily a
a. compulsory retirement income program set up on sound insurance principles. b. forced-savings program where workers save during their working years and receive the principal and interest on these savings at retirement. c. program designed to tax current workers in order to provide benefits for current retirees. d. voluntary savings program run by the government.
If the inflation rate is 5% and the nominal interest rate is 4%, then the real interest rate is around
A. 1%. B. 9%. C. 20%. D. -1%.
Refer to the above data. What level of total utility is realized from the equilibrium combination of J and K determined in the previous question?
A) 156 utils B) 124 utils C) 276 utils D) 36 utils