According to international trade theory
A) trade is based on absolute advantage.
B) comparative advantage is based on absolute advantage.
C) every country has a comparative advantage in something.
D) less developed countries cannot trade successfully with developed countries.
Answer: C
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One of the major drawbacks of crowding out is that it: a. decreases the rates of interest in the economy
b. increases the rates of interest in the economy. c. decreases the short-run growth rate of the economy. d. prohibits foreign investments in an economy.
A compensating differential refers to a difference in wages that arises from nonmonetary characteristics
a. True b. False Indicate whether the statement is true or false
Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was:
A. increased by 1.67 percent. B. increased by 2 percent. C. increased by 8 percent. D. decreased by 0.6 percent.
Unit banks are:
A. more numerous in the United States than they were in previous decades. B. banks with no branches. C. commercial banks that have combined into one unit with an investment bank. D. no longer permitted to exist in the United States.