When a firm sells its good abroad below the cost of producing the good the firm is
A. using the concept of comparative advantage.
B. taking advantage of the infant industry argument.
C. taking advantage of absolute advantage.
D. dumping.
Answer: D
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With fixed quantities of capital, land, and entrepreneurship and fixed technology, the amount of real GDP produced increases when ________ increases
i. the quantity of labor employed ii. the inflation rate iii. the price level A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
What is the current equilibrium price level and real GDP for the economy illustrated in the figure above? Does this economy have an inflationary gap, a recessionary gap, or neither? As it adjusts toward full employment, which curve shifts?
What is the equilibrium real GDP and price level that the economy will ultimately reach?
Among marketable government securities, the largest dollar volume is in the form of
A) Treasury bonds. B) Treasury notes. C) Treasury bills. D) federal funds.
According to the quantity theory of money, if M's growth is less than Q's, then
a. V falls b. V rises c. P stays the same d. P falls e. P rises