According to Adam Smith's theory of absolute advantage, who benefits from engaging in trade?
What will be an ideal response?
both countries engaging in a trade process
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When the dollar depreciates, the cost to Americans of foreign goods
A. rises and the CPI falls. B. rises and the CPI rises. C. falls and the CPI rises. D. falls and the CPI falls.
When people by insurance they often adopt risky behavior. This is an example of
A) adverse selection. B) moral hazard. C) a negative externality. D) moral hazard and a negative externality.
Which term(s) in the general form of the t statistic is (are) computed differently between the usual OLS t-statistic and the heteroskedasticity-robust t-statistic?
A. Estimate and standard error. B. Estimate, standard error, and the hypothesized value. C. Estimate only. D. Standard error only.
Suppose oil prices suddenly begin to rise and the Fed announces that the increase in oil prices are not expected to generate excessive inflation
If the Fed is incorrect in its assumption that rising oil prices will not generate excessive inflation and the inflation rate increases before the Fed takes corrective action, then other things equal, this would result in ________ and ________. A) the IS curve shifting to the right; a movement up the Phillips curve B) the IS curve shifting to the left; a movement down the Phillips curve C) the MP curve shifting up; a movement up the Phillips curve D) the MP curve shifting down; a movement down the Phillips curve