It is possible for a nation to have an absolute advantage in the production of a product, but not a comparative advantage in the production of the same product
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following creates difficulties in making comparisons of real GDP across nations?
A) Each nation has a different population. B) Relative prices differ sharply across countries. C) Nations produce different goods and services. D) Nations often have different languages.
A movement along the AE curve arises from a change in ________, and a movement along the AD curve arises from a change in ________
A) the price level; the price level B) real GDP; investment C) real GDP; the price level D) the price level; investment E) investment; the price level
The United States usually exports ________ goods than it imports and exports ________ services than it imports
A) fewer; more B) more; fewer C) fewer; fewer D) more; more
If the demand for a good is elastic, then total revenue
a. increases as price increases b. remains constant as quantity demanded increases c. increases as price decreases d. decreases as quantity demanded increases e. decreases as price decreases