An example of an acquired comparative advantage is
A. United States companies selling to other countries chemical products that cannot be sold in the United States.
B. the United States producing more agricultural products than other countries because land is more abundant in the United States than in other countries.
C. the United States purchasing coconuts from other countries, because they cannot be produced in the United States.
D. United States consumers buying television sets produced in Japan because Japanese companies have a reputation for producing a higher-quality TV than those produced in the United States.
Answer: D
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The market demand curve
A) cannot show a change in demand for a good. B) is the horizontal sum of individual demand curves. C) is upward sloping. D) cannot show how quantity demanded changes in response to a change in price. E) is the vertical sum of individual demand curves.
An increase in the required reserve ratio, say from 10 to 12 percent would: a. decrease the money supply by a substantial amount. b. decrease the money supply by a small amount
c. increase the money supply by a substantial amount. d. increase the money supply by a small amount.
The expected effects of an increased budget deficit are
a. higher real interest rates. b. exchange rate depreciation. c. lower inflation. d. All of the above are correct.
When firms are said to be price takers, it implies that if a firm raises its price,
a. buyers will go elsewhere. b. buyers will pay the higher price in the short run. c. competitors will also raise their prices. d. firms in the industry will exercise market power.