Specialization and trade benefits all participants only if:
a. They specialize in those things they have both a comparative and absolute advantage in
b. They specialize in those things they have a comparative advantage in, even if they have an absolute disadvantage.
c. They specialize in those things they have an absolute advantage in, even if they have a comparative disadvantage.
d. Traders have the same opportunity cost of production
b
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Check clearing is important to company cash management systems, because:
a. Companies can use it to accelerate payables. b. Companies can use it to decelerate receivables. c. Companies can sweep more funds into interest-earning assets by using efficient check-clearing process. d. All of the above. e. None of the above.
The relationship between real consumption spending and real disposable income
A. plots a horizontal line. B. plots a vertical line. C. is direct. D. is inverse.
Assume there are two companies. Both issue stock, but one is high quality and the other low quality. If potential investors cannot distinguish the quality of the company:
A. this is an example of moral hazard and the shares of both companies will cease to trade. B. the shares of both companies will trade on the market. C. the shares of the high quality firm will disappear from the market. D. the shares of the low quality firm will disappear from the market.
If a market changes from oligopoly to perfect competition, then as a result
A. Prices should rise in the long run. B. Profitability should rise in the long run. C. Fewer resources will be allocated to the market. D. Output should increase in the long run.