When a country specializes and trades with other countries, it is most likely that it specializes in goods for which
A. it has no advantage.
B. it has a comparative advantage.
C. it has an absolute advantage.
D. are very costly to produce.
Answer: B
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The commercial banking system borrows from the Federal Reserve Banks. As a result, the checkable deposits ________.
A. and reserves of commercial banks are both unchanged B. of commercial banks are unchanged, but their reserves increase C. of commercial banks are unchanged, but their reserves decrease D. and reserves of commercial banks both decrease
Maximizing the lifetime value of the firm is equivalent to maximizing the firm's current profits if the:
A. growth rate of profits and the interest rate are equal. B. interest rate is larger than the growth rate in profits and both are constant. C. interest rate is smaller than the growth rate of profits. D. growth rate in profits is constant and is larger than the interest rate.
According to the Phillips curve
A. there is a direct relationship between price-level changes and the level of unemployment rate. B. price-level changes are not affected by changes in the unemployment rate. C. the unemployment rate is not affected by changes in the price level. D. there is an inverse relationship between price-level changes and the unemployment rate.
If a price floor is set above the equilibrium price,
A. quantity demanded will equal quantity supplied. B. there will be a surplus. C. the floor will be ineffective. D. there will be a shortage.