What does it mean for a person or nation to have a comparative advantage in producing a product?
What will be an ideal response?
Having a comparative advantage means the person or nation has the ability to produce the product at a lower opportunity cost than another person or nation.
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When the interest rate in the economy was 10%, the price of a bond with no expiration date that pays a fixed annual interest of $500 was $5,000. If the interest rate in the economy falls to 6%, the price of this bond will be about
A. $7,128. B. $4,700. C. $8,333. D. $5,030.
Without trade, the consumption possibilities for two nations are:
A. outside their production possibilities curve. B. inside their production possibilities curve. C. along their production possibilities curve. D. at a point equal to the world production possibilities curve.
Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would:
A. fall by 50 percent. B. rise by 50 percent. C. increase by 100 percent. D. decrease by 100 percent.
Who ultimately benefits from price supports in agriculture?
A) consumers B) grocery store owners C) farmers D) exporters