Trade between two nations:
A) results in the maximization of total production.
B) reduces global production.
C) leads to a maximization of production in one nation and minimization of production in the other.
D) is inefficient compared to when both do not indulge in international trade.
A
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According to economic reasoning, you should follow Nike's advice and "Just Do It" when Select one:
a. The total benefits are less than the total costs. b. The additional costs are greater than the additional benefits. c. The additional costs are the same as the additional benefits. d. The additional benefits are greater than the additional costs.
The drawback to calculating real GDP using base-year prices is that
A) relative prices change over time and these are not reflected in base-year prices, and this distorts GDP. B) quality changes are reflected in base-year prices. C) relative prices change over time and these changes are reflected in base-year prices. D) real GDP in one year is not comparable to real GDP in another year.
Refer to the information provided in Table 23.3 below to answer the question(s) that follow. Table 23.3
Refer to Table 23.3. Assuming society's MPC is constant at an aggregate of income of $2,000, aggregate consumption would be
A. $1,500. B. $1,600. C. $1,700. D. $1,800.
Neoclassical economics assumes the following as major motivators of decisions and actions, except:
A. Utility maximization B. Loss minimization C. Sense of fairness D. Self-interest