If a country possesses the absolute advantage in the production of one good:
A. then it must also possess the absolute advantage in the production of the other good.
B. then it must also possess the comparative advantage in the production of both goods.
C. then it must also possess the comparative advantage in the production of the other good.
D. it can produce more of that good given the same resources.
D. it can produce more of that good given the same resources.
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Comparisons of economic activity over time should be made using:
A. nominal GDP per capita. B. current-dollar GDP. C. real GDP. D. nominal GDP adjusted for unemployment.
A sudden increase in the U.S. price level
A) makes those with dollar debts worse off. B) makes those with dollar debts better off. C) does not affect those with dollar debts. D) makes those with foreign debts better off. E) increases all dollar debts.
If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate is
A) 5 percent. B) 10 percent. C) 12.5 percent. D) 15 percent.
Aggregate supply shocks cause the price level and real GDP to change in
A) the same direction and by the same amount. B) opposite directions with price changing by less than output. C) opposite directions but not necessarily by the same amount. D) the same direction with price changing by more than output. E) opposite directions but by the same amount.