England has an absolute advantage in the production of
A. neither good and Spain has an absolute advantage in the production of both goods.
B. both goods and Spain has an absolute advantage in the production of neither good.
C. cheese and Spain has an absolute advantage in the production of bread.
D. bread and Spain has an absolute advantage in the production of cheese.
Answer: B. both goods and Spain has an absolute advantage in the production of neither good.
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A change in consumption spending caused by income changes is ________ change in spending, and a change in government spending that occurs to improve roads and bridges is ________ change in spending
A) an autonomous; an induced B) an induced; an autonomous C) a contractionary; an expansionary D) an expansionary; a contractionary
Partnerships whose members have _____ can face difficult problems operating and reaching decisions
a. diverse functions b. specialized functions c. multiple functions d. limited functions
Free markets allocate (a) the supply of goods to the buyers who value them most highly and (b) the demand for goods to the sellers who can produce them at least cost
a. True b. False Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.