According to comparative advantage, trade between two countries
A. maximizes the amount of inputs that are used in the production of all products.
B. allows each of the trading countries to allocate its resources most efficiently.
C. guarantees that consumption levels will be equal in the two countries.
D. will benefit all the industries in each of the countries.
Answer: B
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From 2000 to 2009, the net annual inflow of illegal immigrants has averaged about:
A. 250,000 per year B. 500,000 per year C. 750,000 per year D. 1 million per year
The most important factor in the demise of the debt peonage in the post-Civil War South was:
a. the impact of the boll weevil. b. improved roads. c. the automobile. d. increased urbanization and industrialization.
According to the Keynesian view, if purchasers buy more goods and services than businesses expect,
a. the inventories of firms would decline, and the firms would expand output in order to restore their inventories to desired levels. b. the inventories of firms would increase, and the firms would reduce output until inventories were cut back to the desired level. c. the current level of income would persist in the future. d. firms would reduce their investment, and the economy would fall into a recession.
If a binding price floor is imposed on the market for eBooks, then
a. the demand for eBooks will decrease. b. the supply of eBooks will increase. c. a surplus of eBooks will develop. d. All of the above are correct.