Though the countries can benefit by completely specializing in the production of the good in which they have comparative advantage, in real world however, they do not completely specialize
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that new computer software for accounting and analysis at a business has a useful life of only one year and costs $200,000 before it needs to be upgraded to a new version. The revenue generated by this software is expected to be $250,000. The expected rate of return from this new computer software is
A. 11%. B. 25%. C. 20%. D. 80%.
When the percentage change in the quantity supplied is twice the percentage change in price, then supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
During the 1960s, when confronted with moderate and stable inflation, people tended to form adaptive expectations of future inflation rates
Indicate whether the statement is true or false
If the level of autonomous spending in an economy increases at a given price level, _____
a. the aggregate expenditure line shifts upward and the economy moves upward along the aggregate demand curve b. the aggregate expenditure line shifts downward and the economy moves upward along the aggregate demand curve c. the aggregate expenditure line shifts upward and the aggregate demand curve shifts to the right d. the aggregate expenditure line shifts downward and the aggregate demand curve shifts to the left e. the aggregate expenditure curve shifts upward and the aggregate demand curve shifts to the left