One of the costs not associated with predictable inflation is:
A. menu costs.
B. tax distortions.
C. labor costs.
D. shoe-leather costs.
Answer: C
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Exports are domestically produced goods and services
A) sold at home. B) sold to other countries. C) sold to the government. D) which are used to produce other goods and services.
Imperfectly competitive firms are characterized by
a. horizontal demand curves. b. standardized products. c. a large number of small firms. d. price making ability.
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
As soon as you see the other island's PPC, you realize there are:
A. no gains from trade because you both have the same comparative advantage. B. gains from trade because your island has a comparative advantage in coconuts. C. no gains from trade because the other island has an absolute advantage. D. no gains from trade because there is no difference in your ability to harvest coconuts.
The problem of economic scarcity applies
A) only in countries with no markets to meet people's wants. B) only in underdeveloped countries, because there are no productive resources in these nations. C) only to nations with few resources. D) to the economies of all nations, regardless of their levels of development.