The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage
A. only the production of both goods will increase.
B. only the production of wheat will increase.
C. only the consumption of both goods will increase.
D. the production and consumption of both goods will increase.
Answer: D
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Although rice is a staple of the Japanese diet, the Japanese government has long restricted the importation of rice into Japan. The result of this import quota is:
A) to decrease the price of rice to the Japanese people. B) to decrease the consumer surplus of Japanese rice consumers. C) to decrease the producer surplus of Japanese rice producers. D) a welfare gain for the Japanese people. E) to increase the consumption of rice by the Japanese people.
To minimize the effect of short-term political pressure on the Fed's Board of Governors, the governors are all appointed to their terms: a. in different years, and their terms are long
b. in different years, and their terms are short. c. in the same year, and their terms are long. d. in the same year, and their terms are short. e. in the same year, and their terms are shorter than that of the chairman of the Federal Reserve Board.
Social Security payments are included in personal income
a. True b. False Indicate whether the statement is true or false
Which of the following is included in the aggregate demand for goods and services?
a. consumption demand
b. investment demand
c. net exports
d. All of the above are correct.