Which statement if false?
A. If the U.S. can produce rice more efficiently than Japan can, the U.S. enjoys an absolute advantage.
B. Economists dislike both tariffs and import quotas.
C. Under the law of comparative advantage, total output is greatest when each product is made by the country that produces it most efficiently.
D. No nation will engage in trade with another nation unless it will gain by that trade.
C. Under the law of comparative advantage, total output is greatest when each product is made by the country that produces it most efficiently.
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In the figure above, if the government starts to provide university education at no charge, in the long run, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will ________
A) rise; fall B) fall; rise C) fall; fall D) rise; rise
What is destabilizing speculation? What role did it play in the collapse of the Bretton Woods system?
What will be an ideal response?
Any point on the contract curve is Pareto efficient regardless of the initial endowment
Indicate whether the statement is true or false
Suppose the marginal propensity to consume is 0.80 and equilibrium GDP resulting from a change in investment spending falls by -$500 billion. What must have been the initial change in investment spending
a. $100 billion b. -$100 billion c. $500 billion d. -$500 billion e. -$400 billion