China has a comparative advantage in textiles and an absolute advantage in both textiles and radios. Japan has a comparative advantage in radios. According to this scenario
A. China should export textiles and import radios.
B. Japan should import both radios and textiles.
C. China should export both radios and textiles.
D. Japan should export textiles and import radios.
Answer: A
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Between 1917 and 1982, the US ran a financial account deficit
a. True b. False
A U.S.-owned car factory in Mexico produces $5 million of cars. $2.5 million of these cars are sold in Mexico and the other $2.5 million are sold in the U.S. In both cases $1 million of the value of the cars was due to U.S-owned equipment located in Mexico and U.S. managers working in Mexico. How much did this production contribute to U.S. GDP?
a. $0 b. $1 million c. $2 million d. None of the above are correct
Measured in 2014 dollars, real GDP per person in the United States in 2014 was about 10 times that in
a. China. b. India. c. Indonesia. d. Pakistan.
Suppose the Fed forecasts a reduction in excess reserve holdings by banks. It might offset the effect of this on the money supply by
A) buying government securities. B) lowering the required reserve ratio. C) lowering the discount rate. D) selling government securities. E) a, b, and c