Which of the following must be true in order to engage in advantageous international trade?
a. It must be producing at a point on its production possibilities frontier.
b. It must be economically efficient.
c. It must have a comparative advantage in producing one of the goods being traded.
d. There must be no potential Pareto improvements available in the economy.
e. It must have an absolute advantage in producing one good being traded.
C
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Assume that the yield on a security has two possible outcomes. There is a 60 percent chance it will yield 10 percent and a 40 percent chance it will yield 5 percent. The expected yield for this security is
A) 10.0 percent. B) 8.0 percent. C) 7.5 percent. D) 6.0 percent.
The MR=MC rule
A) applies to price-makers only. B) does not vary by market structure. C) is only true in competitive markets. D) applies to price-makers that have MR=P.
The dominant factor affecting medical care delivery and finance in the 1980s was:
a. creation of Medicare and Medicaid. b. prospective payment for hospitals. c. the explosive growth of managed care. d. the Hill-Burton Act. e. ERISA.
If the inflation rate turns out to be greater than was is expected to be, the clear losers are
A. businesses. B. people on incomes adjusted by a COLA. C. borrowers. D. lenders.