Countries that engage in trade will tend to specialize in goods in which they have a(n) _______ and will _______ those goods.
A) comparative advantage; import
B) absolute advantage; export
C) comparative advantage; export
D) economic profit; import
Ans: C) comparative advantage; export
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Which of the following statements about health insurance is true?
A. Medicare is a government program set up to cover the medical expenses of low-income families and individuals with disabilities. B. Medicaid is a government program set up to cover the medical expenses of older citizens. C. For employer-provided health insurance plans, the employee generally pays the bulk of the costs, while the employer covers 10 or 20 percent of the overall insurance expenses. D. Low-income workers are less likely than high-income workers to be covered by an employer health plan.
The labor force includes only
A. people who are employed. B. the employed and the unemployed. C. the employed, the unemployed, and discouraged workers. D. the unemployed and discouraged workers.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Which of the diagrams best portrays the effects of a substantial reduction in government spending?
Use the following diagrams for the U.S. economy to answer the following question.
A. A.
B. B.
C. C.
D. D.