Gains of trade are possible for two countries if they have:
A) different opportunity costs.
B) equal opportunity costs.
C) different political systems.
D) identical political systems.
Ans: A) different opportunity costs.
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Which of the following result from a change in the money supply brought about by an open market sale?
A) lower interest rate, higher exchange rate, decreased demand for investment and net exports B) higher interest rate, higher exchange rate, decreased demand for investment and decreased demand for net exports C) lower interest rate, lower exchange rate, increased demand for investment and net exports D) higher interest rate, lower exchange rate, decreased demand for investment and increased demand for net exports
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.
When analyzing stages of economic development in the United States, it appears that we have entered the "tertiary stage." This is a stage marked by a shift toward
A. services. B. population increases. C. agriculture. D. manufacturing.