Refer to Table 3-34. For which good(s) does Indonesia have a comparative advantage
a. bananas but not rice.
b. rice but not bananas.
c. nether rice nor bananas.
d. rice and bananas.
Ans: b. rice but not bananas.
You might also like to view...
The multiplier for investment represents the ratio of the change in income to the change in investment spending
Indicate whether the statement is true or false
Persons who do not work because of bad weather or vacation are part of
a. the unemployed labor force. b. the employed labor force. c. frictional unemployment. d. cyclical unemployment.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and monetary base in the context of the Three-Sector-Model? a. The real risk-free interest rate falls and monetary base falls
b. The real risk-free interest rate rises and monetary base falls. c. The real risk-free interest rate and monetary base remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables.
When the Fed sells government securities to a bank, the securities will be
A) an asset for the bank. B) a liability for the bank. C) both an asset and a liability for the bank. D) neither an asset nor a liability for the bank.