The principle of comparative advantage states that countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners.
Answer the following statement true (T) or false (F)
True
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Which of the following is a New Keynesian explanation of wage and price stickiness must be discounted?
A) overlapping wage contracts B) menu costs C) efficiency wages D) all of the above
The consumption theories proposed by Modigliani and Friedman suggest that during recessions consumers reduce
A) consumption and maintain saving. B) saving and maintain consumption. C) consumption and saving. D) consumption and investment.
The farm revolt (Populism) led ultimately to all of the following changes in society except
(a) Universal public education (b) Women's suffrage (c) Secret ballots (d) The vote for working men
The major objective of the European Central Bank is to control taxes as a means of deficit spending
a. true b. false