For any pair of countries, there is
A. one single exchange rate that will lead automatically to both countries realizing the gains from specialization and comparative advantage.
B. a range of exchange rates that can lead automatically to both countries realizing the gains from specialization and comparative advantage.
C. a range of exchange rates that can lead indirectly to one country realizing the gains from specialization and comparative advantage, but not the other country.
D. one single exchange rate that will lead indirectly to one country realizing the gains from specialization and comparative advantage, but not the other country.
Answer: B
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Proprietorships, partnerships, and corporations are the primary forms of
A) industries. B) business organization. C) principal-agent relationships. D) command-incentive relationships.
The demand curve for a factor is that part of the MRP where marginal product is
A. rising. B. falling. C. positive. D. negative.
Economists before the 1940s were most likely to call a rise in asset prices inflation, as long as it is accompanied by an increase in:
A. a price index. B. GDP. C. goods inflation. D. the money supply.