A country will specialize in the good for which
A) it has absolute advantage.
B) it has moderate production costs.
C) it can produce at minimum average cost.
D) it has comparative advantage.
Answer: D
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Refer to Goods X and Y. Which of the following can cause a parallel, outward shift in the budget line?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. A rise in the consumer's income. b. A rise in the marginal value of X in terms of Y. c. A fall in the price of good X. d. A fall in the price of good Y.
Why might improvements in children's public health care services lower fertility?
What will be an ideal response?
The U.S. market for interbank borrowing and lending is called the:
a. Primary market. b. Secondary market. c. Money market. d. Eurodollar market. e. Federal funds markets.
When all relevant information is used to forecast inflation, the resulting forecast is called
A) a rational expectation.
B) a natural expectation.
C) an expected forecast.
D) an expansionary expectation.
E) the expected expectation.