Which of the following is false?
a. Once a country has a comparative advantage in producing a good, that comparative advantage will always continue.
b. If you can mow the lawn at home faster than your younger brother, you have a comparative advantage over him in mowing the lawn.
c. Restrictions on trade will reduce people's degree of specialization according to comparative advantage
d. As practice at producing what you have a comparative advantage in makes you better at it, your comparative advantage would tend to increase.
a
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The Skinned Knee Corporation can produce either 300 skateboards each week or 500 snowboards each week. What is their opportunity cost of producing 300 skateboards each week?
A) 300 skateboards B) 200 snowboards C) 500 snowboards D) 800 snowboards
An increase in license fees -- a long run recurring fixed cost -- will lead to a drop in the number of firms competing in a competitive industry.
Answer the following statement true (T) or false (F)
The Phillips curve is a negative empirical relationship between
A) bond prices and interest rates. B) unemployment and output. C) inflation and the real interest rate. D) unemployment and inflation.
In the presence of serial correlation:
A. estimated standard errors remain valid. B. estimated test statistics remain valid. C. estimated OLS values are not BLUE. D. estimated variance does not differ from the case of no serial correlation.