When a country has the ability to produce a good or service at a lower opportunity cost than others, they:
A. should remain self-sufficient.
B. are free-traders.
C. have an absolute advantage.
D. have a comparative advantage.
Answer: D
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Suppose the price level increases by 5 percent and the nominal wages of workers increase by 3 percent during a particular year. This implies that the real wage has: a. declined by 2 percent
b. declined by 8 percent. c. also increased by 2 percent. d. also increased by 8 percent. e. remained constant.
The U.S. private sector holds about ________ percent of outstanding U.S. Treasury bonds.
A. 22 B. 30 C. 50 D. 17
Suppose the price P on a given demand curve results in a price elasticity of demand equal to 1. Any price higher than P will lie on the ________ part of the demand curve, and any price lower than P will lie on the ________ part of the demand curve.
A. inelastic; elastic B. elastic; inelastic C. unit elastic; inelastic D. elastic; unit elastic
Empirical evidence shows that prices are sticky ________
A) in all sectors of the economy B) in hardly any sectors of the economy C) except in response to changes within individual markets D) all of the above E) none of the above