Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia. We can conclude that
A) Labor costs are higher for surfboard producers in New Zealand than in Australia.
B) Australia also has an absolute advantage in producing surfboards relative to New Zealand.
C) Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
D) New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
C
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Refer to the scenario above. This implies that Lawland has a trade ________
A) deficit B) surplus C) tariff D) equilibrium
The main reason that the United States has such a high standard of living is
A) low unemployment. B) high average labor productivity. C) low inflation. D) high government budget deficits.
Different banks:
A. may offer loans at different rates. B. all offer loans at the same interest rate. C. are mandated to follow the Fed's set interest rate. D. never offer loans at exactly the same rates.
Refer to the graph shown. Which of the curves represents an inverted yield curve?
A. A B. B C. C D. D