Refer to the information provided in Figure 20.2 below to answer the question(s) that follow.
Figure 20.2Refer to Figure 20.2. the U.S. has
A. no comparative advantage in producing either cars or trucks.
B. an absolute advantage in producing trucks.
C. a comparative advantage in producing trucks.
D. a comparative advantage in producing cars.
Answer: D
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The Sherman Antitrust Act of 1890 is the federal antitrust law that prohibits:
A. monopolization and conspiracies to restrain trade. B. mergers the substantially lessen competition. C. exclusive dealing, tying contracts, and interlocking directorates. D. unfair methods of competition in commerce.
Assume the interest parity condition holds and that initially i = i*. A reduction in the foreign interest rate (i*) will cause
A) an increase in the demand for the domestic currency. B) an increase in E. C) an expected depreciation of the domestic currency. D) all of the above
Which of the following services is performed by the regional Federal Reserve banks?
A. Issuing government bonds. B. Holding bank reserves. C. Bailing out or liquidating failed banks. D. Determining open market operations.
Along the aggregate production function, as the quantity of labor rises, real GDP
A) rises. B) falls. C) stays the same. D) may fall, rise, or stay the same.