A fixed exchange rate causes:
A) transaction costs to increase.
B) efficiency to increase only if the economies are integrated.
C) efficiency to increase under all circumstances.
D) volume of trade to decline.
Ans: B) efficiency to increase only if the economies are integrated.
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The number of computers produced per day in Domium is 1,000 more than the number of computers produced in Chromium. Domium and Chromium have the same number or workers and have the same opportunity costs for producing computers
Which of the following statements is true? A) Domium has an absolute advantage in producing computers. B) Chromium has an absolute advantage in producing computers. C) Chromium has a comparative advantage in producing computers. D) Domium has a comparative advantage in producing computers.
________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
A) Autarky B) Absolute advantage C) Comparative advantage D) Specialization
The colony of Georgia was established in 1732 . During the colony's early years,:
a. each arriving settler received a 50-acre farm. b. cotton plantations were the primary source of income. c. the slave population assisted free colonists in defending the Georgia-Florida border. d. the slave population exceeded the free population. e. All of the above.
For purposes of calculating the CPI, the apparel category of consumer spending includes the cost of
a. clothing, but not footwear or jewelry. b. clothing and footwear, but not jewelry. c. clothing and jewelry, but not footwear. d. clothing, footwear, and jewelry.