Countries engaged in international trade specialize in production based on
A. comparative advantage.
B. the differences in transportation costs.
C. relative foreign exchange rates.
D. relative price levels.
Answer: A
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Evaluate the following statement: "Water is plentiful, therefore it can't be a scarce resource like oil which is not as plentiful."
What will be an ideal response?
During a period of disinflation the purchasing power of the dollar _____.
Fill in the blank(s) with the appropriate word(s).
Absent government interference, the wage rate for labor in a competitive market is established
A) solely by the firm's demand for labor. B) solely by the market supply of labor. C) by both the demand for and supply of labor at each individual firm. D) by the the market supply and market demand for labor.
If there is no one who is interested in borrowing from a bank:
a. the bank's excess reserves will be zero. b. there will be no process of money creation. c. the required reserve ratio must be equal to zero. d. the required reserve ratio must be equal to 100 percent.