The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than other producers is referred to as:
A) marginal advantage.
B) absolute advantage.
C) cardinal advantage.
D) comparative advantage.
D
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Because banks are act as dealers in financial instruments such as bonds, foreign currency and derivatives, they are exposed to
A) credit risk. B) liquidity risk. C) trading risk. D) interest risk.
The main objective of financial liberalization is ________
A) to encourage financial innovation B) to improve the allocation of financial capital C) to discourage volatility in financial markets D) to reduce the likelihood of a credit boom
The consumer price index is designed to measure the extent to which
a. the cost of a typical bundle (market basket) of consumer goods has changed over time. b. consumers have increased their spending over time. c. GDP is allocated to consumers, rather than to business or government, over time. d. prices paid by employers to resource owners have changed over time.
One can determine producers' surplus if the minimum selling price and the _____________ are known
A) price received B) price paid C) tax paid D) tax received E) a and c