Specialization and trade are closely linked to
a. absolute advantage.
b. comparative advantage.
c. gains to some traders that exactly offset losses to other traders.
d. shrinkage of the economic pie.
b
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In the market for oranges, availability of substitutes limits a single seller's power over price
Indicate whether the statement is true or false
The Phillips curve shows the relationship between unemployment and inflation
a. True b. False Indicate whether the statement is true or false
In a situation where two goods can be produced by two different people, it is possible for one person to have a comparative advantage in the production of both goods and the other person to have the comparative advantage in the production of neither good
Indicate whether the statement is true or false
Policy tools to influence the macroeconomy include
A. Wars, natural disasters, and trade disruptions. B. Tax policy, government spending, and the availability of money. C. External shocks and internal market forces. D. Population growth, spending behavior, and invention.