When can two countries gain from trading two goods?
a. when the first country can only produce the first good and the second country can only produce the second good
b. when the first country can produce both goods, but can only produce the second good at great cost, and the second country can produce both goods, but can only produce the first good at great cost
c. when the first country is better at producing both goods and the second country is worse at producing both goods
d. Two countries could gain from trading two goods under all of the above conditions.
d
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Long-term increases in productivity that have increased the demand for labor, and raised real wages, have resulted primarily from ________ and ________.
A. a modernized capital stock; an increased labor supply B. a modernized capital stock; skill-biased technological change C. technological progress; a modernized capital stock D. technological progress; an increased labor supply
A quota
A) makes domestic producers worse off. B) makes domestic consumers worse off. C) makes both domestic producers and consumers better off. D) makes everyone worse off.
A nation can gain from international trade when
a. its relative production costs are the same as those of other countries. b. it exports goods for which it is a low-opportunity cost producer while importing goods that it could produce only at a high opportunity cost. c. it imports goods for which it is a low-opportunity cost producer and exports goods for which it is a high opportunity cost producer. d. it has a trade deficit.
Under the purchase-and-assumption method, the FDIC usually finds it:
A. cannot sell the bank and almost always has to revert to the payoff method for dealing with a failed bank. B. can sell the bank at a price equaling the value of the failed banks assets. C. has to sell the bank at a negative price since the bank is insolvent. D. can sell the failed bank for more than the bank is actually worth.