If a country has an absolute advantage in the production of every good, it cannot benefit from trade with other countries
a. True
b. False
B
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Banks can obtain funds to make loans by borrowing reserves from other banks through the federal funds market
Indicate whether the statement is true or false
Which of the following statements is correct?
a. Advocates for drug-interdiction policies that reduce the supply of illegal drugs argue that the demand for illegal drugs may be more responsive in the long run than in the short run. b. The demand for illegal drugs is price inelastic. c. Drug interdiction efforts that reduce the supply of illegal drugs may increase drug-related crimes. d. All of the above are correct.
When an industry has many firms, the industry is
a. an oligopoly if the firms sell differentiated products, but it is monopolistically competitive if the firms sell identical products. b. an oligopoly if the firms sell differentiated products, but it is perfectly competitive if the firms sell identical products. c. monopolistically competitive if the firms sell differentiated products, but it is perfectly competitive if the firms sell identical products. d. perfectly competitive if the firms sell differentiated products, but it is monopolistically competitive if the firms sell identical products.
If disposable income were to fall from $6,000 to $5,000,
A. induced consumption would fall. B. induced consumption would stay the same. C. induced consumption would rise. D. there is not enough information to determine whether induced consumption would rise, fall or remain the same.