Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the ________ advantage in the production of tablets, which means they should specialize in ________.
A. comparative; iPods
B. absolute; tablets
C. absolute; iPods
D. comparative; tablets
Answer: D
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"If the money supply rises by $1 billion, GDP will rise until it alone increases the quantity of money demanded by $1 billion." This describes the situation when
A) an IS curve shifts against a horizontal LM curve. B) an IS curve shifts against a vertical LM curve. C) a vertical LM curve shifts against an IS curve. D) a horizontal LM curve shifts against an IS curve.
The double taxation of corporate profit in the United States refers to the fact that
A) tax rates on partnerships are very high. B) depreciation is not a deductible expense. C) corporate profit is first taxed and then any dividends paid are subject to personal income tax. D) proprietorships are not subject to any tax on earnings.
A traffic light at an intersection is
a. a public good. b. a private good. c. a club good. d. a common good.
A rise in the price level causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase