Assuming a competitive world, does your country have a comparative advantage in making pizza? You can get your answer by
a. observing if your country makes more pizza than any other country
b. comparing pizza prices in other countries
c. calculating the opportunity cost of a pizza in your country
d. comparing the opportunity cost of producing pizza in your country with the opportunity cost of producing pizza in other countries
e. comparing your country's terms of trade to the terms of trade in other countries
D
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The gap that exists when equilibrium real GDP is greater than the level of real GDP shown by the position of the long-run aggregate supply curve is
A) the short-run aggregate supply curve. B) money illusion. C) a recessionary gap. D) an inflationary gap.
Why do vertical contracts impose restraints and obligations?
Student loans are
A. rarely discharged (forgiven) in bankruptcy. B. collected first in bankruptcy proceedings. C. treated no differently than other obligations in bankruptcy. D. usually discharged (forgiven) in bankruptcy.
Which of the following products are likely to be complementary goods?
A) Coke and Pepsi B) portable MP3 players and batteries C) HD-DVDs and Blu-Ray DVDs D) Domino's pizza and Papa John's pizza