If a country has a comparative advantage in producing a product, it may or may not have an absolute advantage in producing that product
Indicate whether the statement is true or false
TRUE
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What are the effects of fiscal policy during normal times? What are the effects of fiscal policy during abnormal times?
What will be an ideal response?
Which of the following indicates that the average standard of living is rising?
a. Real GDP decreases faster than the price level. b. Real GDP increases faster than the price level. c. The population increases. d. Real GDP increases faster than the population. e. Population increases faster than real GDP.
Explain the forces that can cause an exchange rate to change.
What will be an ideal response?
The interest that people receive on the government bonds is part of
a. net national product and is included in national income b. their personal income, but is not included in national income c. their personal income, but is included in capital depreciation d. the underground economy, so it is not included in GDP e. the numerous transfer payments the government makes, so they are not counted as part of national income