The principal concept behind comparative advantage is that a nation should:
A. Maximize its volume of trade with other nations
B. Use tariffs and quotas to protect the production of vital products for the nation
C. Concentrate production on those products for which it has the lowest domestic opportunity cost
D. Strive to be self-sufficient in the production of essential goods and services
C. Concentrate production on those products for which it has the lowest domestic opportunity cost
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The hedonic price method
a. is a direct method of estimating benefit b. relies on the theory that goods are valued for their attributes c. is a physical linkage approach d. is useful but not intuitive
Bankers have an advantage in developing a relationship with their business borrowers because
A) banks provide a menu of services which allows them to learn about a company. B) banks have access to higher quality credit reports. C) banks are better at getting owners to pledge collateral than are other lenders. D) loans to small businesses are usually less than 5 years thus allowing encouraging borrowers to return more frequently for evaluation.
Which of the following can make it very difficult for monetary policy to address a recession?
a. velocity b. inflation c. deflation d. aggregate demand
A preferred shareholder
a. receives a stated dividend yield if profits are sufficient b. can vote at shareholder meetings on important corporate matters c. can vote at shareholder meetings only on the election of the members of the board of directors d. can convert his or her shares into common shares e. receives a dividend before bondholders receive anything