As a country develops economically, what changes usually take place in the goods it exports?
A. Exports go from being diversified to being specialized in whatever the country finds to be its comparative advantage.
B. Raw materials and agricultural products decline in importance and are replaced by services and manufactured goods.
C. Services and manufactured goods decline in importance and are replaced by raw materials and agricultural products.
D. There is little change because comparative advantage does not change.
Answer: B
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There is only one supermarket in Beverly Hills, California because
A) supermarkets can't compete effectively against residents in buying land. B) supermarket owners are paying attention to sunk costs in their location decisions. C) the demand for food is highly elastic in wealthy neighborhoods. D) the demand for food is highly inelastic in wealthy neighborhoods. E) wealthy people rarely do their own grocery shopping.
Overall, professional securities analysts have a 75 percent success rate in predicting winning stocks.
Answer the following statement true (T) or false (F)
In 2009, the United States had its largest peacetime deficit. How much did the federal government spend over its revenue in that year?
a. $582 trillion b. $1.4 billion c. $1.4 trillion d. $582 billion
An economic expansion causes
a. the federal budget deficit to rise. b. federal government tax receipts to fall. c. federal government spending to rise. d. transfer payments to fall. e. transfer payments to rise.