The theory of comparative advantage suggests that trade should happen
a. between economies with small differences in opportunity costs of production.
b. between economies with large differences in opportunity costs of production.
c. between economies with large differences in specialization.
d. between economies with small differences in specialization.
b. between economies with large differences in opportunity costs of production.
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According to the circular flow model, ________.
A. net investment must equal gross investment B. income must equal expenditures C. exports must equal imports D. saving must equal investment
The management of expectations has increased in importance in policymaking in recent decades with the rise of ________
A) traditional Keynesian theory B) institutionalist theory C) torsion theory D) new Keynesian theory
An asset's liquidity depends upon
A) the absolute size of its value and how long it takes to sell the asset at market value. B) how long it takes to sell the asset at market value and the costs of selling the asset. C) the costs of selling the asset and the fraction of its value that can be obtained if it is sold immediately. D) the fraction of its value that can be obtained if it is sold immediately and the absolute size of its value.
A CPI miscalculation that overstates its increase by 0.8 percentage points will cause
A. Social Security's Maximum Taxable Earnings to rise too quickly. B. Social Security's Maximum Taxable Earnings to rise too slowly. C. the price of goods to rise. D. the price of services to rise.