A country that has a comparative advantage in producing capital goods will ________ a country that has a comparative advantage in consumption goods
A) reap all of the gains from trade when it trades with
B) grow slower than
C) reap fewer of the gains from trade when it trades with
D) specialize in producing capital goods and trade with
D
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For movements along the short-run aggregate supply curve
A) the money wage rate is constant. B) the real wage rate changes. C) potential GDP remains constant. D) All of the above are correct.
A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to students to maximize profits?
A. 2500 B. 500 C. 200 D. 600
Refer to Figure 13.3. If exchange rates are floating, fiscal policy designed to reduce the federal deficit and the typical Fed response to the change in inflation caused by the fiscal policy would best be represented by a movement from ________ in
panel (a) and a corresponding movement from ________ in panel (b). A) point A to point D; point X to point Y B) point C to point B; point X to point Y C) point D to point A; point Y to point X D) point B to point C; point Y to point X
Which if the following does not affect the nominal interest rate?
a. The real interest rate. b. The current inflation rate. c. Society's time value of money. d. The amount of government borrowing. e. The expected inflation rate.