The ratio of a country's average export price to its average import price is
(a) its absolute advantage.
(b) its comparative advantage.
(c) its terms of trade.
(d) its exchange rate.
C
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On a diagram of a production possibilities frontier, economic decline (negative growth) is represented by the production possibilities frontier shifting inward
Indicate whether the statement is true or false
Which of the following individuals would be considered unemployed?
a. a lawyer temporarily working as an assistant in a law firm b. a computer technician who has not worked for 10 months and gave up looking 4 months ago c. a full time student who feel that he is taking too many classes to work d. none of the above
The allocation of resources is efficient under an idealized free market system
a. True b. False Indicate whether the statement is true or false
Which of the following observations is true?
a. State governments are the shareholders of the Fed. b. The Fed chairman is appointed for a ten year term. c. FOMC decisions largely determine short-term interest rates. d. Member banks proportionately share all of Federal Reserve's profits.