When a country specializes in the production of a good that is relatively cheaper for it to produce than other goods, it is because of:
A) the foreign-trade multiplier.
B) comparative advantage.
C) nontariff barriers.
D) absolute advantage.
Answer: B) comparative advantage.
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The idea of the invisible hand was introduced by
A. Wassily Leontief. B. Adam Smith. C. Thomas Jefferson. D. Mountifort Longfield.
Competitive forces will reduce the effects of employers’ discrimination over time.
Answer the following statement true (T) or false (F)
In the structural stagnation model where the world price level is below the domestic price level, expansionary monetary policy:
A. raises the price level. B. increases the trade deficit. C. leads to higher interest rates. D. lowers domestic output.
In the past few centuries, choices have led to a substantial decline in the standards of living around the globe.
Answer the following statement true (T) or false (F)