Which of these is the basis of international trade?
A. Absolute advantage
B. Comparative advantage
C. Both comparative advantage and absolute advantage
D. Neither comparative advantage nor absolute advantage
B. Comparative advantage
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Use the following diagrams for the U.S. economy to answer the next question.
Which of the diagrams best portrays an expansion?
A. Graphs (1) and (2) B. Graphs (1) and (3) C. Graphs (2) and (4) D. Graphs (3) and (4)
A price searcher faces the following demand function: At $7, 6, 5, 4, and $3, the quantity demanded is 300, 400, 500, 600, and 700 units respectively. Which statement below is true?
A) Total revenue is $11,500. B) Marginal revenue is $300 when the price is $5. C) Marginal revenue is $100 when the price is $5. D) Marginal revenue is $2100 when the price is $3.
In the Classical view, rising interest rates reduce
A) government spending. B) saving. C) velocity. D) investment.
When reality show participants travel through foreign countries, they are generating a
A. Supply of U.S. dollars and a demand for a foreign currency. B. Demand for U.S. dollars and a supply of a foreign currency. C. Supply of U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.