The Ricardian two-country two-good model predicts that there are potential benefits from trade, but NOT
A) the effect of trade on income distribution.
B) the mechanism that determines which country will specialize in which good.
C) when one country has an absolute advantage in the production of both goods.
D) when one country has significantly lower wages than the other country.
E) when both countries have the same types of technology available.
A
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When expectations of inflation are revised downward, the short-run Phillips curve: a. shifts rightward. b. becomes steeper. c. shifts leftward
d. becomes flatter.
When the price is $2
A. quantity supplied is greater than quantity demanded and, therefore, price must rise to get to equilibrium.
B. quantity supplied is less than quantity demanded and, therefore, price must fall to get to equilibrium.
C. quantity demanded is greater than quantity supplied and, therefore, price must rise to get to equilibrium.
D. quantity demanded is greater than quantity supplied and, therefore, price must fall to get to equilibrium.
Which is not a typer of decision that can be made at the margin?
(A) Whether to leave early in the morning or late in the day for a trip. (B) Whether or not to hire 100 new workers. (C) Whether or not to go on a vacation. (D) Whether to grow beans or corn on a large farm.
Which statement is true?
A. State and local governments are expected to provide more and more services while their tax bases are limited. B. State and local governments are expected to provide less and less services while their tax bases are relatively unlimited. C. Public education has traditionally been the role of the federal government. D. None of these statements are true.