Countries tend to export different goods and services because of:
a. differences in their comparative advantages.
b. differences in tastes and technological needs.
c. differences in income.
d. similarities in resource endowment.
e. differences in the exchange rates.
a
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When tastes are quasilinear in leisure, the labor supply curve is vertical.
Answer the following statement true (T) or false (F)
The above figure shows the marginal private benefit and marginal social cost of a college education. If students receive a $10,000 voucher
A) no students will go to college. B) less than 10 million students will go to college. C) 10 million students will go to college. D) more than 10 million students will go to college.
Which of the following is an appropriate discretionary fiscal policy if equilibrium real GDP falls below potential real GDP?
A) an increase in the supply of money B) an increase in individual income taxes C) a decrease in transfer payments D) an increase in government purchases
The balance of goods and services is
a. the same as the merchandise trade balance, since services cannot be traded b. equivalent to the trade balance c. the value of all goods and services exported minus the value of all goods and services imported d. the value of all tangible products exported minus the value of all tangible products imported e. the value of all tangible products exported minus the value of all tangible products imported, and transactions to finance the difference