What are the implications for economic growth for countries specializing in consumer goods rather than capital goods? Assume that they cannot trade what they produce
What will be an ideal response?
All else equal, countries that specialize in consumer goods will likely grow less than those that specialize in capital goods, because specializing in capital goods will allow for more goods to be produced in the future.
Difficult: M
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In the figure above, if the firm is regulated using an average cost pricing rule, the economic loss created is equal to the area of
A) ABG. B) BEFG. C) BCFG. D) BCE. E) None of the above because there is no economic loss created.
Factors that help determine the level of planned investment include
a. profit expectations. b. the interest rate. c. the size and age of the existing stock of capital. d. All of these.
A decrease in the supply of milk will lead to a decrease in the QUANTITY DEMANDED of milk.
a. true b. false
The rate that the least risky firms pay on bonds that they issue is the
A. federal funds rate. B. commercial paper rate. C. triple-A corporate bond rate. D. prime rate.