Suppose the United States can produce 2,000 cars or 2,000 trucks. Japan can produce either 2,000 cars or 1,000 trucks. In terms of car production, we can conclude that
A. The United States has a comparative advantage.
B. The United States has an absolute advantage.
C. Japan has an absolute advantage.
D. Japan has a comparative advantage.
Answer: D
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A) a dental office. B) a manufacturing factory. C) a public library. D) a shopping center.
Prior to World War II, the international financial system had operated on
a. a floating exchange rate system b. a managed exchange rate system c. a laissez-faire exchange rate system d. the gold standard e. the dollar standard
If the writer of an option, holds shares of the stock or an actual quantity of the commodity when she writes the call option on it, her position is said to be:
a. protected. b. exposed. c. covered. d. naked.
Which of the following will NOT reduce the actual money multiplier?
a) Banks keeping some excess reserves. b) Consumers keeping money on hand for transactions. c) An increase in reserve requirements. d) A certain bank being loaned up.