Which of the following is true?
a. A nation cannot have a comparative advantage in the production of every good.
b. A nation cannot have an absolute advantage in the production of every good.
c. A nation can have a comparative advantage in the production of every good, but not an absolute advantage.
d. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage.
e. A nation cannot have an absolute advantage in the production of a good unless it also has a comparative advantage.
a
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Use the following table to answer the next question.YearUnemployment Rate (%)Inflation Rate (%)14.03.024.52.535.02.045.53.055.02.5Based on this data, we can conclude ________.
A. the Phillips Curve model is wrong B. the Phillips Curve model cannot be evaluated C. the Phillips Curve model is correct D. the Phillips Curve model is sometimes correct, but does not account for all events
The circular flow diagram shows that
A) households spend all their income on goods and services. B) the value of total income is equal to the total value of expenditures on final goods and services. C) firms pay households wages, and households receive transfer payments from firms. D) GDP will be less than the total value of expenditures on final goods and services in the economy.
________________ and ______________ are often found together in a market.
A. Monopolistic competition; oligopoly B. Perfect competition; oligopoly C. Monopoly; oligopoly D. Monopolistic competition; monopoly
When the Fed sets a money supply target,
a. it expects the economy is heading toward recession b. the demand for money adjusts to the discount rate c. the legal reserve requirement becomes ineffective d. the resulting interest rate is set as well e. the interest rate is determined solely by the position of the demand curve for money