According to international trade theory, a country should:
a. import goods in which it has an absolute advantage
b. specialize in the production of the good in which it has an absolute disadvantage.
c. export goods when it has either a comparative or absolute disadvantage in producing them.
d. specialize in the production of the good in which they have a comparative advantage.
d
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Which of the following is not an example of money used as a unit of account?
a. A British pound is worth $3.00. b. Auto repairs were $3,000 last year. c. Business travel totaled 12,000 miles. d. Gasoline sells for $1.20 per gallon and oil is $5.00 per quart.
Which of the following led to the collapse of the Phillips Curve?
a. Rightward shift in the demand for labor curve b. Leftward shift of the Phillips curve c. Leftward shift of the aggregate supply curve d. Rightward shift of the aggregate demand curve.
Which of the following is NOT correct? a. In 2015, the inflation rate was 7.8 percent in the U.S
b. In 2015, the inflation rate was 84.1 percent in Venezuela c. In 2015, the inflation rate was 4.9 percent in India d. In 2015, the inflation rate was 1.5 percent in China.
The short-run industry supply curve slopes up because
A. the firms eventually experience diseconomies of scale. B. the higher price is needed to get more firms to enter the industry. C. the law of diminishing marginal product applies in the short run. D. wages increase as the industry increases output.