Who is the classical economist credited with developing the principle of comparative advantage?

a. David Ricardo
b. John Maynard Keynes
c. Adam Smith
d. Milton Friedman


a. David Ricardo

Economics

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Which of the following statement is correct?

A) If nominal GDP does not change, then real GDP cannot change. B) If nominal GDP decreases, then real GDP must increase. C) Nominal and real GDP can change either in the same direction or the opposite direction. D) If real GDP decreases, then nominal GDP must decrease. E) If nominal GDP increases, then real GDP must increase.

Economics

Given the scenario described, if the market price of hammers increased from $8 to $14, total producer surplus would:

Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. increase from $8 to $14. B. increase from $1 to $12. C. decrease from $14 to $8. D. increase from $7 to $30.

Economics

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion, what was the GDP deflator?

a. 87.5. b. 114.3. c. 400. d. 896.

Economics

Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.

A. D; C B. D; B C. A; B D. B; C

Economics