When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:
A. has an absolute advantage at producing that good.
B. has a comparative advantage at producing that good.
C. has no reason to trade with others.
D. is efficient in production.
B. has a comparative advantage at producing that good.
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If the deficit is 0.1 times GDP, the existing debt—GDP ratio is 0.5, and the growth rate of nominal GDP is 0.04, then the change in the debt—GDP ratio is
A) +0.08 B) +0.075. C) 0. D) -0.075.
Heartel was the only telecom service provider in Country A until the government decided to allow foreign telecom companies to provide their services in the country. Due to the impact of the new policy, the supply curve for telecom services from Heartel will: a. become less elastic
b. become more elastic. c. shift to the right. d. shift to the left.
Firms seek to differentiate their product
A) to avoid state and federal regulation. B) to create an illusion of value. C) to strengthen their demand and to make it more inelastic. D) to strengthen their demand and to make it more elastic.
An example of automatic stabilizers is
A. government spending falling during an expansion. B. government spending falling during a recession. C. deficit targeting. D. taxes falling in an expansion.