If a country has absolute advantage in the production of all goods, then it will have no incentive to trade
Indicate whether the statement is true or false
F
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Fogel's work (1964) on the economic impact of railroads is mostly written in response to
(a) Rostow's takeoff theory. (b) Schumpeter's theory of railroads building ahead of demand. (c) David's theory of path dependency. (d) Engerman's theory of multiroute analysis.
As long as trade across borders is unrestricted and exchange rates adjust freely, the purchasing power parity theory predicts that the exchange rate between two national currencies will adjust in the
a. short run because of the actions of arbitrageurs b. long run to reflect differences in the nations' price levels c. long run to reflect changes in the governments' trade policies d. short run because of the actions of speculators e. long run to reflect differences in military power
In the United States, leisure is a significant element in developing an accurate measure of
a. national income. b. personal income. c. disposable personal income. d. the standard of living.
An adverse supply shock shifts the short-run Phillips curve to the left
a. True b. False Indicate whether the statement is true or false