When a nation has a comparative advantage in producing a product, then in comparison with any other nation it can produce that product:
At a higher average total cost
At a lower domestic cost
With less technology
With less labor
At a lower domestic cost
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Effectively managing aggregate demand in order to stabilize nominal GDP requires
A) policy makers to know the size of the gap between current demand and demand at equilibrium. B) only that policy makers know what level of aggregate demand is necessary for full employment. C) successful economic forecasting. D) that nominal GDP be the same as real GDP. E) very little information about the economy because the market system is an efficient generator of high-quality information.
Deposit insurance can lead to ________
A) an increase in adverse selection B) a decrease in bank costs C) a decrease in bank lending rates D) an increase in risks banks take on
Both minivan sales and birth rates are on the rise. The conclusion that minivans cause people to have children is an example of making the mistake of:
A. extrapolation. B. omitted variables. C. correlation without causation. D. reverse causality.
A co-payment and coinsurance are the same thing.
A. True B. False C. Uncertain