A country is most likely to have a comparative advantage in the production of cars if:
A. it has strict environmental protection laws governing automobile emissions.
B. its citizens prefer driving cars to other forms of transportation.
C. it imports most of the raw materials necessary to produce cars.
D. it has a relative abundance in the natural resources needed to produce cars.
Answer: D
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M1 is a measure of
A) money and includes both currency and checking deposits. B) liquidity and in which the most liquid asset is money. C) money and includes both savings deposits and currency. D) money and includes both savings deposits and money market mutual funds.
The Times Series Regression with Multiple Predictors
A) is the same as the ADL(p,q) with additional predictors and their lags present. B) gives you more than one prediction. C) cannot be estimated by OLS due to the presence of multiple lags. D) requires that the k regressors and the dependent variable have nonzero, finite eighth moments.
From an economic standpoint, the amount of pollution should be
A) zero. B) the amount that allows firms to maximize profits. C) the amount where firms are earning a normal rate of return on investment. D) at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
Command-and-control policies lead to higher prices for consumers than pollution taxes do.
Answer the following statement true (T) or false (F)