In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it cannot benefit by trading with the other country
Indicate whether the statement is true or false
FALSE
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The collection of laws, regulatory measures, and actions concerning a particular topic that originate with some body of government is called
A) fiscal policy. B) public policy. C) private policy. D) antitrust policy.
Which of the following statements is FALSE?
A) disposable income - saving = consumption B) consumption + saving = disposable income C) saving = disposable income - consumption D) consumption = saving - disposable income
The elasticity of labor demand does not depend on the:
A. elasticity of demand for the firm's product. B. elasticity of labor supply. C. possibility of and cost of substitution in production. D. relative importance of the factor in the production process.
Within the framework of the aggregate expenditures model, which of the following is true?
A. When spending on goods and services exceeds the level business decision makers anticipated, inventories will rise. B. Equilibrium will always occur at the full-employment level of output. C. A nation's imports will decline as the nation's disposable income increases. D. When spending on goods and services exceeds the level of aggregate output, inventories will fall.