An economic principle that explains why countries produce different goods and services is
A) trade as a percentage of GDP. B) absolute advantage.
C) NAFTA. D) comparative advantage.
D
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The maximum amount by which the entire banking system can create money is equal to:
a. a fraction of its excess reserves. b. a fraction of its required reserves. c. a multiple of its total reserves. d. a multiple of its excess reserves. e. its excess reserves.
If real GDP is $1000 billion and the aggregate expenditure is $850 billion, then the change in inventories will be
A. $150 Billion B. $1,850 million. C. –$1,850 million. D. –$150 million.
Import bans, import quotas, voluntary export restraints (VERs), and tariffs on goods all:
A. increase imports and raise prices for consumers. B. reduce imports and prices for consumers. C. reduce imports and raise prices for consumers. D. increase imports and reduce prices for consumers.
Public utilities are the classic examples of
A. industries protected by patents. B. industries owning a scarce factor of production. C. natural monopolies. D. industries with network effects.