Answer the following statements true (T) or false (F)
1. The ability to produce a good or service at a lower opportunity cost than other producers face is known as comparative advantage.
2. The ability of a nation to gain from specialization and exchange is affected by factors such as shipping costs and exchange rates.
3. One cause for the uneven standard of living throughout the world is the uneven distribution of resources.
4. The application of the principle of comparative advantage requires each of two trading partners to have an absolute advantage over the other in the production of some particular commodity.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
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Which of the following is the best example of tacit collusion?
A) The formation of a cartel. B) Price leadership. C) Predatory pricing. D) Noncooperative pricing behavior.
If over the next year the inflation rate in the euro area is higher than the inflation rate in Japan, then the euro should depreciate relative to the Japanese yen
a. True b. False Indicate whether the statement is true or false
The efforts of a nation to influence exchange rates is known as:
A. open market operations. B. foreign exchange market intervention. C. rate discrimination. D. establishing terms of trade.
Establishing rules for voter registration is an example of a(n)
A. transfer payment. B. public good. C. economic function of government. D. political function of government.