Which of the following is always measured in prices from a base-year?
a. both nominal and real GDP.
b. nominal but not real GDP.
c. real but not nominal GDP.
d. neither nominal nor real GDP.
c
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Which figure above shows the effect if research is published claiming that eating pizza is healthy?
A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure A and Figure D
A trough in the business cycle occurs when:
A. the natural rate of unemployment is at a minimum point. B. employment and output reach their lowest levels. C. cyclical unemployment is at a minimum point. D. structural and frictional unemployment are at their highest levels.
Carlos is an executive of a major corporation. Boris is a baker. Carlos earns a salary ten times as large as the salary Boris earns, and Carlos has a much larger oven for baking break. Carlos can make a loaf of bread that tastes better than Boris's bread
but Boris can bake faster. A) Carlos has an absolute and comparative advantage over Boris in making bread. B) Carlos has an absolute but not comparative advantage over Boris in making bread. C) Carlos had a comparative but not absolute advantage over Boris in making bread. D) Carlos does not have an absolute or comparative advantage over Boris in making bread.
The trade model described in the text demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage. In reality we do not see complete specialization in production
State three reasons why this is case. What will be an ideal response?