Which of the following will strongly influence a nation's level of trade?
a. A size of its economy, its geographic location, and its history of trade
b. size of its government, its history of trade, and its geographic location
c. government trade policy, its history of trade, and the size of its economy
d. ratio of exports to GDP, balance of trade, and government trade policy
a. A size of its economy, its geographic location, and its history of trade
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The principle of comparative advantage holds that nations should
a. specialize in activities for which they have the lowest opportunity cost. b. strive to become self-sufficient in production. c. produce only goods and services for which they have absolute advantage. d. become less labor-intensive and more capital-intensive.
What is the antithesis of the rule of law?
A) Arbitrary governance
B) Governance according to the will of whoever is in charge
C) Both of the above.
D) None of the above.
The discount rate is the interest rate charged by:
A. major banks to their best customers. B. banks for overnight loans to other banks. C. the Fed on loans of reserves to banks. D. banks for loans of less than 24 hours.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher