Comparative advantage is based on the
A) concept that some countries are superior to others.
B) concept of absolute advantage of producing goods in different countries.
C) concept of relative opportunity cost of producing goods in different countries.
D) concept that some countries are better endowed with natural resources.
Answer: C
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If (PVB/PVC)for a given policy option equals 5.5, this means that
a. the policy option is not feasible b. for every dollar of incremental costs incurred by society, there are $5.50 in realized incremental benefits c. the policy option is feasible d. both (b) and (c) are correct
Which of the following will lead to a decrease in the value of Spanish income per capita in dollars?
A) An increase in the value of the Spanish income per capita in Euro B) A decrease in the dollar/euro exchange rate C) An increase in the dollar/euro exchange rate D) A decrease in the income per capita of U.S.
If the monthly unemployment rate increase mentioned in the Application was a temporary aberration, the best economic decision by the committee would be to
A) not change monetary policy. B) increase the money supply to stimulate the economy. C) decrease the money supply to stimulate the economy. D) decrease the money supply to slow the economy down.
The largest component of national income is
A) compensation of employees. B) rental income. C) corporate profits. D) proprietors' income.