The basis for international trade is
a. established trade patterns
b. the size of gold holdings of two countries
c. shipping and transportation costs
d. absolute advantage
e. comparative advantage
E
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In the circular flow model, consumption goods are bought and sold in the
A) goods markets. B) financial market. C) factor markets. D) government market. E) monetary flows.
Which would be one of the factors that increase aggregate demand?
A. An increase in consumer wealth. B. An increase in the productivity of labor. C. An increase in personal income tax rates. D. An increase in real interest rates.
Which of the following is a characteristic of bonds?
A) pay zero nominal interest B) can be used for transactions C) are sold for a price that varies inversely with the interest rate D) all of the above E) none of the above
Regulation of business, according to the legal cartel theory, stems from:
A. The public wanting protection from potentially capricious firms B. Economists who see greater efficiency in regulated industries C. Lawyers whose jobs are more secure in cartels D. Firms wanting to be regulated in order to shut off competition