When comparing the U.S. and Mexican car assembly industries, the disadvantage of higher U.S. wages is offset by
A) Mexican trade barriers.
B) trade adjustment assistance in the United States.
C) higher productivity in the United States.
D) a lower opportunity cost in Mexico.
E) "Buy American" advertising campaigns in the United States.
C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
To convert nominal GDP to real GDP, we use which one of the following?
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The primary advantage of mutual funds is that they
a. always make a return that "beats the market." b. allow people with small amounts of money to diversify. c. provide customers with a medium of exchange. d. All of the above are correct.
Specialization in goods and services one can produce at a low cost makes it possible for trading partners to produce a larger joint output. This is called
What will be an ideal response?