Specialization in production
A. Increases output.
B. Makes a country weak.
C. Decreases total world output.
D. Reduces the standard of living.
Answer: A
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Based on economic criteria, a nation should choose a fixed exchange rate if:
A) the monetary authorities are capable of handling shocks. B) the net benefits of fixing versus floating are positive. C) the net benefits of fixing versus floating are negative. D) there is a liberal political agenda that restricts government authority over capital flows.
According to the Keynesian IS-LM model, what is the effect of each of the following on output, the real interest rate, employment, and the price level? Distinguish between the short run and the long run.(a)Expected inflation decreases.(b)Labor supply increases due to a change in demographics.(c)The future marginal product of capital increases.
What will be an ideal response?
Assume Gloria is initially in equilibrium and that X and Y are normal goods for her. Then the price of X falls. For Gloria to move to a new equilibrium point her consumption of
A. X must decrease. B. X must remain constant, but her consumption of Y must decrease. C. X must increase. D. both X and Y must decrease.
The difference between individual and aggregate demand is
a. Individual demand is the total demand of all the individuals in a market b. In the aggregate demand, each point represents a single consumer's different values for a single unit of the good c. In the aggregate demand, each point represents a consumer group's value of the good d. All of the above