If a country can produce rice with a lower opportunity cost than its trading partners, then it must have:
A. An absolute advantage in the production of all other goods except rice.
B. A comparative advantage in the production of all other goods except rice.
C. An absolute advantage in the production of rice.
D. A comparative advantage in the production of rice
D. A comparative advantage in the production of rice
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An increase in shipments of currency from the Federal Reserve to commercial banks will
A) increase the money supply. B) increase bank reserves. C) reduce bank reserves. D) have no effect on bank reserves.
In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then GDP decreases
a. True b. False Indicate whether the statement is true or false
An example of an oligopoly is: a. the commercial airline industry. b. a stock market
c. the video rental industry. d. the market for eyeglasses.
The increase in the quantity of labor supplied in response to a higher wage is called the:
A. income effect. B. substitution effect. C. price effect. D. labor effect.