When a country or a region of a country specializes in producing the product that has the lower opportunity cost compared to another country or region, it is practicing
A) absolute advantage.
B) cost disadvantage.
C) regional advantage.
D) comparative advantage.
Answer: D
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The practice of increasing a nominal quantity each period by an amount equal to the percentage increase in a specified price index is called:
A. indexing. B. the Fisher effect. C. a substitution bias. D. deflating.
Classify the following goods as private goods, common pool resources, club goods, or public goods
a. Health insurance b. Radio spectrum c. A video on YouTube d. A mosquito control program in a city e. A library's collection of e-books
The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains, in part, the passage of
A) the National Bank Charter Amendments of 1918. B) the Garn-St. Germain Act of 1982. C) the National Bank Act of 1863. D) Federal Reserve Act of 1913.
If a firm is wondering whether or not it should "buy or make,"
A) it is exploring its horizontal boundaries. B) it is exploring its vertical boundaries. C) it is exploring the boundaries of its network. D) it is considering a "winner-take-all" event.