An economic principle that explains why countries produce different goods and services is
A) absolute advantage.
B) trade as a percentage of GDP.
C) comparative advantage.
D) NAFTA.
Answer: C
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If the exchange rate between the Mexican peso and the U.S. dollar expressed in terms of pesos per dollar is 13.5 pesos = 1 dollar, what is the exchange rate when expresses in terms of dollars per peso?
What will be an ideal response?
The nominal gross domestic product (GDP) for a country was $1,000 in 2003 and $1,500 in 2004 . The GDP price index was 100 in 2003 and 150 in 2004 . Between 2003 and 2004, real GDP _____
a. increased by $500 b. increased by $333 c. increased by $50 d. remained the same e. decreased by $50
When prices are falling, economists say that there is
a. disinflation. b. deflation. c. a contraction. d. an inverted inflation.
The supply of money in the U.S. economy is determined primarily by:
A. decisions made by the Federal Reserve and the U.S. Treasury. B. the actions of the Federal Reserve and the banking system. C. consumers and the banking system. D. the demand for money in the economy.