When a country has the ability to produce more of a good than others with a given amount of resources, they:
A. have an absolute advantage.
B. are free-traders.
C. have a comparative advantage.
D. should remain self-sufficient.
Answer: A
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The wearing out of plants and equipment is known as
A. Maintenance Costs. B. Depreciation. C. Chain-weighted adjustment. D. Inflation.
Products ________ in the oligopolistic market structure.
A. are always homogeneous B. are always unique C. may be homogeneous or differentiated D. are always differentiated
Which of the diagrams illustrate(s) the effect of a decline in the price of irrigation equipment on the market for corn?
A. B only.
B. C only.
C. B and C.
D. D only.
Refer to the diagram. Suppose that, as expected, aggregate demand declines from AD 2 to AD 1 . A direct move of the economy from c to a would best reflect:
A. new classical economics.
B. mainstream economics.
C. the real-business-cycle theory.
D. a coordination failure.