Specialization occurs when each individual, firm, or country:
A) produces only a few specific goods and relies on trade for the other goods and services it needs.
B) is self-sufficient and produces all the goods and services it needs, without relying on imports.
C) produces only those goods for which it has a higher opportunity cost of producing than the opportunity cost in other nations.
D) produces only those goods which are in demand in the global market and allow for high rates of profitability.
A
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Refer to Figure 17-6. Under Scheme I
A) workers signal their productivity to the firm by consistently selling above 30 vacuum cleaners. B) the incentive to increase productivity only occurs for sales of fewer than 20 vacuum cleaners or more than 30 vacuum cleaners. C) workers compete with each other to see who can sell more than 20 vacuum cleaners in the shortest possible time. D) workers have no incentive to sell more than 30 vacuum cleaners.
Which of the following decreases money demand?
A) Bonds become more risky. B) The introduction of online banking. C) Disruptions in the banking system. D) An increase in ATM fees.
It takes more money to purchase the same amount of goods when prices _____. Therefore, the value of your money has ____
Fill in the blank(s) with correct word
Suppose the value of the CPI is 1.100 in year one, 1.122 in year two, and 1.133 in year three. Assume also that the price of computers increases by 3 percent between year one and year two, and by another 3 percent between year two and year three. The price level is increasing, the inflation rate is ________, and the relative price of computers is ________.
A. decreasing; increasing B. decreasing; decreasing C. increasing; decreasing D. increasing; increasing