To obtain the greatest gains from trade, a country should specialize in and ____ those goods for which it has a comparative advantage and ____ those goods for which other countries have a comparative advantage
a. export; export
b. import; import
c. export; import
d. import; export
c
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The fact that at the competitive equilibrium nobody can be made better off without making someone else worse off implies that
A) the equilibrium is pareto efficient. B) the equilibrium is not pareto efficient. C) the prices need to adjust further. D) further gains from trade are possible.
If the private-sector wage of biologists was significantly greater than that of music professors, what might happen if a university tried to pay its entire faculty the same salary?
The percentage of U.S. adults with a high school education or has:
A. remained constant since the 1960s. B. risen from 8 percent in 1960 to 31 percent in 2012. C. risen to over 90 percent in the twenty-first century. D. risen from 41 percent in 1960 to 88 percent in 2012.
In a private closed economy, when aggregate expenditures equal GDP:
A. consumption equals investment. B. consumption equals aggregate expenditures. C. planned investment equals saving. D. disposable income equals consumption minus saving.