By specializing and trading, a country is able to
A) produce but not to consume combinations of goods that lie beyond its production possibilities frontier.
B) consume but not to produce combinations of goods that lie beyond its production possibilities frontier.
C) obtain the absolute advantage in the goods it produces.
D) both produce and consume combinations of goods that lie beyond its production possibilities frontier.
E) neither produce nor consume combinations of goods that lie beyond its production possibilities frontier.
B
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Which of the following is NOT considered an example of a capital good?
A) a miner's cap B) a GPS tracking device C) an airport kiosk D) a U.S. government bond E) a stethoscope
Increases in real GDP would overstate the increase in the well-being of a country over time if, over that time period, the
A) price level increased. B) amount of pollution decreased. C) crime rate decreased. D) average hours worked per week increased.
The process of globalization has ________
A) decreased inequality B) increased inequality C) had little measurable effect on income inequality D) has increased income inequality in developing countries but decreased inequality in developed countries
A measure that allows us to compare the prices of consumer goods and services in the year 2000 that a household typically purchases to the prices of those goods and services the household purchased in the base year 1997 is
a. the GDP deflator b. the consumer price index c. the price level d. inflation e. the base measure