Which of the following is true?
A. A nation cannot have a comparative advantage in the production of every good.
B. A nation cannot have an absolute advantage in the production of every good.
C. A nation can have a comparative advantage in the production of every good, but not an absolute advantage.
D. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage.
A. A nation cannot have a comparative advantage in the production of every good.
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Which of the following transactions represents the purchase of a final good or service?
A) General Motors purchases tires from Goodyear to install on its new Chevy Suburbans. B) Aunt Matilda buys a new convection oven for her condo in Boca Raton. C) Dunkin' Donuts purchases coffee beans. D) Tiffany's buys platinum wire to use in the production of its necklaces.
If a country exports more than it imports, then it has
a. positive net exports and positive net capital outflows. b. positive net exports and negative net capital outflows. c. negative net exports and positive net capital outflows. d. negative net exports and negative net capital outflows.
When we compare PAE and actual output (Y) if PAE is greater than Y we expect that:
A. eventually production will decrease. B. eventually production will increase. C. the government will intervene by cutting down on taxes. D. there will be no change in aggregate production.
Refer to the above data. The expenditures approach to GDP calculation can be done by adding:
a. 1 through 7 b. 8 through 13 c. 2 through 7 d. 8 through 11