When nations specialize in their areas of comparative advantage and then trade with the rest of the world, the result is that
A) the average standard of living in the world will go down.
B) the average standard of living in the world will go up.
C) the world will move from a point on the production possibilities curve to a point inside the curve.
D) worldwide economic efficiency will decrease.
Answer: B
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Refer to the table above. What is the average monthly wage?
A) $612 B) $650 C) $558 D) $450
A rightward shift of a market supply curve might be caused by:
a. the entry of new firms in the industry. b. an increase in the wages of labor employed in the industry. c. an increase in the price of the final product. d. a decrease in the income of consumers. e. an increase in the supply of a substitute good.
A theory predicts that all swans are white. A thousand people go out into the field and identify the color of the swans they see. Their results reveal that, of the 10,000 swans they saw, all were white. It follows that
A) the swan theory is a falsifiable theory. B) the swan theory is correct. C) the evidence fails to reject the swan theory. D) a and b E) a and c
Which of the following financial transaction items is entered as a debit in the U.S. balance of payments?
A. A U.S. resident transfers $100 from his account at Credit Suisse in Basel (Switzerland) to his account at a San Francisco branch of Wells Fargo Bank. B. A French resident transfers $100 from his account at Wells Fargo Bank in San Francisco to his Credit Suisse account in Basel. C. A U.S. resident sells his Credit Suisse stock to a French resident. D. A U.S. resident sells his IBM stock to a French resident.