The difference between absolute and comparative advantage is that:
a. absolute advantage refers to input cost, while comparative advantage refers to opportunity cost.
b. absolute advantage refers to opportunity cost, while comparative advantage refers to input cost.
c. absolute advantage is applicable only to individuals, and comparative advantage is applicable only to countries.
d. absolute advantage is applicable only to countries, and comparative advantage is applicable only to individuals.
e. absolute advantage is applicable to international trade, while comparative advantage applies to exchange of goods in the domestic market.
a
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An individual who is suffering from money illusion is more concerned with
A) real prices than with nominal prices. B) nominal prices than with relative prices. C) relative prices than with nominal prices. D) relative prices than with real prices.
Which of the following statements is true?
A) Extractive economic institutions foster economic activity, productivity growth, and economic prosperity, while inclusive institutions fail to do so. B) Both extractive and inclusive institutions foster economic activity, productivity growth, and economic activity. C) Both extractive and inclusive institutions fail to foster economic activity, productivity growth, and economic activity. D) Inclusive economic institutions foster economic activity, productivity growth, and economic prosperity, while extractive institutions fail to do so.
A loan covenant is a guarantee provided by the directors of a company that a term loan will be repaid by the maturity date.
a. true b. false
Quarterly data for the years 1988-93 for the nominal federal funds interest rate and the output ratio show that the Fed
A) reacted to a high output ratio by raising the interest rate. B) reacted to a high output ratio by lowering the interest rate. C) reacted to low output ratios but not to high output ratios. D) did not react to movements in the output ratio.