By specializing in the production of particular goods, a nation is:
A) less likely to make efficient use of available resources.
B) more likely to engage in international trade.
C) able to become self-sufficient.
D) unable to develop a comparative advantage.
Ans: B) more likely to engage in international trade.
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Refer to the diagrams. The numbers in parentheses after the AD 1 , AD 2 , and AD 3 labels indicate the levels of investment spending associated with each curve, respectively. All numbers are in billions of dollars. If the interest rate is 6 percent and the goal of the Fed is full-employment output of Q f , it should:
A. increase the interest rate from 6 percent to 8 percent.
B. decrease the interest rate from 6 percent to 4 percent.
C. decrease the interest rate from 6 percent to 2 percent.
D. maintain the interest rate at 6 percent.
Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $13, Marko's will produce
A) 1 shirt. B) 2 shirts. C) 3 shirts. D) 4 shirts.
The underground economy includes: a. only illegal sources of unreported income
b. both legal and illegal sources of unreported income. c. both legal and illegal sources of reported income. d. payments that are reported to the government.
The PE ratio is determined by dividing the earnings per share by the current market price of the stock
a. True b. False Indicate whether the statement is true or false