The United States is capable of producing many goods and services that it imports, but it does not because
A. We have lost those skilled workers.
B. We can export goods that we specialize in.
C. We produce those goods more cheaply if we make them ourselves.
D. We can import those goods at a lower opportunity cost than if we make them ourselves.
Answer: D
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Which of the following statements is true?
A) Optimization requires individuals to foresee the future perfectly. B) An optimizing individual need not consider the risks involved in various choices. C) An optimizing individual is also likely to exhibit rationality. D) The less information that is available, the easier it is to make optimal decisions.
The table below shows the data (in millions) for Wells Fargo Bank in September 2007 and September 2008. Suppose that the required reserve ratio is 3 percent
2007 2008 Loans 79 100 Reserves 11 11 Deposits 247 266 The data show that A) the currency drain ratio increased. B) the Federal Reserve must have increased the required reserve ratio. C) Wells Fargo had excess reserves and could create money in 2007. D) Wells Fargo was only able to make more loans in 2008 because it gained more deposits.
We say that goods are substitutes when they:
A. serve similar-enough purposes that a consumer might purchase one in place of the other. B. are consumed together, so that purchasing one will make a consumer more likely to purchase the other. C. can replace something consumers typically purchase at a significantly lower price. D. change a consumer's preferences for a good or service.
Lower nominal interest rates ________ the amount of money demanded and lower real income ________ the amount of money demanded.
A. decrease; decreases B. increase; does not change C. increase; increases D. increase; decreases