Which of the following factors can result in a nation developing a comparative advantage?
a. an abundance of highly skilled labor.
b. large amounts of unskilled labor.
c. a favorable climate.
d. All of these.
d. All of these.
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When the real interest rate rises in the anchor country, ________
A) expansionary monetary policy will be used to maintain the interest rate peg B) an economic stimulus is transmitted to pegged economies C) there will be downward pressure on the value of pegged currencies D) the anchor currency becomes vulnerable to a speculative attack
The introduction of computer-based technologies in the telephone industry caused
a. an increase in the supply of telephone services. b. an increase in the demand for telephone services. c. an increase in the price of telephone services. d. a decrease in the number of calls handled daily by telephone companies.
Suppose a banking system has $100,000 in deposits, a required reserve ratio of 25 percent, and total bank reserves for the whole system of $25,000. Then the potential increase in deposit creation for the whole system is equal to
A. $25,000. B. $0. C. $100,000. D. $50,000.
Refer to the graph shown. Assuming that the industry continues to operate under conditions of perfect competition and that the cost curves do not shift, in the long run this firm will produce:
A. 800 units of output. B. 1,400 units of output. C. 1,200 units of output. D. 1,000 units of output.