Can a country have comparative advantage in all products?
What will be an ideal response?
No, a country can never have comparative advantage in all products, no matter how productive it is in general. Comparative advantage has to do with the relative price a country can produce one good or another in autarky versus the cost at which they can trade those goods with other economies. There will always be goods that are cheaper to produce in another country than at home, relative to the opportunity cost of not producing goods in which the country has comparative advantage.
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Comparing Tobin's model of the speculative demand for money with Keynesian speculative demand
A) both models imply that individuals hold only money or only bonds. B) the Keynesian model implies individuals diversify their asset holdings, while the Tobin model predicts that individuals hold only money or only bonds. C) the Tobin model implies individuals diversify their asset holdings, while the Keynesian model predicts that individuals hold only money or only bonds. D) both models imply that individuals diversify their asset holdings.
When the initial and only deposit in the banking system is $1,000 and the legal reserve requirement is 20 percent, what is the total money in the economy assuming banks loan out the maximum?
a. $800 b. $1,000 c. $1,250 d. $2,000 e. $5,000
An industry having a four-firm concentration ratio of 85 percent:
A. approximates pure competition. B. is monopolistically competitive. C. is a pure monopoly. D. is an oligopoly.
If excess demand exists in a market, then
a. excess supply will emerge to absorb the excess demand b. the quantity supplied is less than the quantity demanded c. the quantity demanded is less than the quantity supplied d. the equilibrium price will fall e. the price will fall