Japan and China can both produce guns and rice. The country with the lowest opportunity cost of guns (in terms of rice) will
A. import guns.
B. have a comparative advantage in guns.
C. have an absolute advantage in guns.
D. have a comparative advantage in rice.
B. have a comparative advantage in guns.
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The ratio of the dollar price of a toy in the U.S. to the dollar price of a toy in China represents the ________ between the two currencies
A) nominal exchange rate B) ordinal exchange rate C) expected exchange rate D) real exchange rate
The figure above shows a monopoly firm's demand curve. At point t
A) demand is elastic. B) demand is unit elastic. C) demand is inelastic. D) total revenue is at a minimum.
Keynes and many of his contemporaries believed that money was
a. major importance because the idea of the liquidity trap only came later. b. even more important than fiscal policy. c. little importance and monetary policy of little use as a stabilization tool. d. major importance but of little use as a stabilization tool. e. none of the above.
Fireworks would be considered:
A. a common resource. B. a private good. C. a public good. D. an artificially scarce good.