Which of the following is TRUE?
A) Adam Smith proposed the theory of comparative advantage as the basis for trade in The Wealth of Nations.
B) David Ricardo proposed the theory of absolute advantage as the basis for trade.
C) Absolute advantage is based on comparing the opportunity costs of trading partners.
D) The Ricardian model assumes labor is perfectly mobile.
D
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What is one way to offset the economic stability loss due to fixed exchange rates?
What will be an ideal response?
According to the quantity theory of money, a shortage of money should result in deflation (falling prices) or negative growth (decreasing quantities of output)
Indicate whether the statement is true or false
Non-neutral technological change is more valuable to labor than neutral technological change
What will be an ideal response?
Some critics have argued that moving children to private schools might reduce the _________ of education.
A. pure public goods aspect B. positive externalities C. size of library holdings D. size of teachers unions influence