The United States is one of the richest nations in the world,
A) so it does not need to trade with poor nations in order to achieve any gains from trade.
B) so it might not have a comparative advantage in producing any goods.
C) but it can still benefit from specialization and trade.
D) so it must have a comparative advantage in the production of all goods.
E) so it must have an absolute advantage in the production of all goods.
C
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Neuroeconomics is
A) the study of the activity of a human brain when the person makes economic decision. B) the study of how people behave when they face scarcity. C) the study of situations in which people act economically irrationally. D) the study of how people make decisions at the margin.
If the Fed's policy is contractionary, it will
A) use open market operations to sell Treasury bills. B) lower the reserve requirement. C) use open market operations to buy Treasury bills. D) lower the discount rate.
An open market purchase, a decrease in the discount rate, and a decrease in the reserve requirement would shift the aggregate demand curve rightward
Indicate whether the statement is true or false
Vertical contracts that aim to decrease retailer prices typically
a. Benefit the consumer, hurt the manufacturer and the retailer b. Benefit the manufacturer, hurt the consumer and retailer c. Benefits the consumers, manufacturers and retailers d. Hurts all the manufacturers, consumers and retailers